Certara Inc (CERT)

Debt-to-equity ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021
Long-term debt	US$ in thousands	288,217	288,661	289,104	289,546	289,988	290,428	290,868	291,308	291,746	292,183	292,622	293,689
Total stockholders’ equity	US$ in thousands	1,046,840	1,051,750	1,097,170	1,085,060	1,079,660	1,054,400	1,048,380	1,048,400	1,041,850	971,320	834,510	827,267
Debt-to-equity ratio		0.28	0.27	0.26	0.27	0.27	0.28	0.28	0.28	0.28	0.30	0.35	0.36

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $288,217K ÷ $1,046,840K
= 0.28

Certara Inc has maintained a consistent debt-to-equity ratio over the past eight quarters, ranging between 0.27 and 0.28. The stability in the ratio indicates that the company's level of debt relative to its equity has remained relatively steady during this period. A low and consistent debt-to-equity ratio suggests that Certara Inc relies more on equity financing rather than debt financing to support its operations and growth. This financial metric indicates a conservative approach to leverage, which can reduce financial risk and enhance the company's ability to weather economic downturns. Overall, Certara Inc's debt-to-equity ratio reflects a prudent capital structure management strategy.