Certara Inc (CERT)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Total assets | US$ in thousands | 1,563,140 | 1,572,920 | 1,511,730 |
| Total stockholders’ equity | US$ in thousands | 1,046,840 | 1,079,660 | 1,041,850 |
| Financial leverage ratio | 1.49 | 1.46 | 1.45 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,563,140K ÷ $1,046,840K
= 1.49
The financial leverage ratio of Certara Inc has been relatively stable over the four-year period from 2020 to 2023, ranging from 1.45 to 1.54. The ratio indicates that the company relies more on debt financing compared to equity to fund its operations and investments. An increasing trend in the financial leverage ratio suggests a higher level of financial risk as the company is taking on more debt relative to its equity. Conversely, a decreasing trend may indicate a more conservative financing structure. The current ratio of 1.49 as of December 31, 2023, suggests a moderate level of leverage, which could be manageable depending on the company's ability to generate sufficient cash flow to meet its debt obligations.
Peer comparison
Dec 31, 2023