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	Sep 30, 2021	Jun 30, 2021	Mar 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	1,414,790	1,265,340	1,262,620
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
Financial leverage ratio		1.49	1.45	1.43	1.44	1.46	1.43	1.43	1.44	1.45	1.46	1.52	1.53

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.