Certara Inc (CERT)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,563,140 | 1,526,820 | 1,572,220 | 1,566,760 | 1,572,920 | 1,508,690 | 1,501,750 | 1,507,030 | 1,511,730 |
| 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 |
| Financial leverage ratio | 1.49 | 1.45 | 1.43 | 1.44 | 1.46 | 1.43 | 1.43 | 1.44 | 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 for Certara Inc has remained relatively stable over the past eight quarters, ranging from 1.43 to 1.49. This indicates that the company relies on a moderate level of debt to finance its operations compared to its equity. A financial leverage ratio above 1 suggests that the company utilizes more debt than equity in its capital structure.
Although the ratio has shown slight fluctuations, it appears that Certara Inc has maintained a consistent approach to its debt management during the period under review. It is essential for the company to monitor and manage its financial leverage ratio effectively to ensure it maintains a healthy balance between debt and equity financing and can meet its financial obligations without taking on excessive risk.
Peer comparison
Dec 31, 2023