Certara Inc (CERT)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.49 | 1.46 | 1.48 | 1.46 | 1.49 | 1.45 | 1.43 | 1.44 | 1.46 | 1.43 | 1.43 | 1.44 | 1.45 | 1.46 | 1.52 | 1.53 | 1.54 | 2.05 | 2.15 | 0.00 |
Certara Inc's solvency ratios reflect a strong financial position over the period under review. The Debt-to-assets ratio has consistently been at 0.00, indicating that the company has not been reliant on debt to finance its assets. This suggests a low level of financial risk as the company has a strong ability to cover its obligations with its assets.
Similarly, the Debt-to-capital ratio and Debt-to-equity ratio have remained stable at 0.00 over the same period. This further supports the notion that Certara Inc has a conservative capital structure with little reliance on debt for funding its operations. A low Debt-to-capital and Debt-to-equity ratio indicate that the company is mainly funded by equity, which indicates a low financial risk.
The Financial leverage ratio, which measures the proportion of debt in the company's capital structure, has shown a declining trend from 2.15 in June 2020 to 1.49 by December 2024. This decreasing trend indicates that Certara Inc has been reducing its reliance on debt over time, which is a positive sign for solvency as it reduces the company's financial risk and potential interest rate sensitivity.
Overall, based on the solvency ratios analysis, Certara Inc appears to be in a robust financial position with a conservative debt profile, low leverage, and a strong ability to cover its obligations.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -0.27 | -0.87 | -2.62 | -1.71 | -1.41 | -0.54 | 2.26 | 2.09 | 2.31 | 2.69 | 2.06 | 1.64 | 1.49 | -2.32 | -1.68 | -1.25 | -0.98 | 1.23 | 1.61 | 1.81 |
The interest coverage ratio for Certara Inc has exhibited fluctuating trends over the analyzed periods. The ratio indicates the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT).
From March 31, 2020, to June 30, 2020, the interest coverage ratio decreased moderately from 1.81 to 1.61. Subsequently, there was a more significant decline to 1.23 by September 30, 2020, indicating a potential strain on the company's ability to cover interest payments with its operating income.
The ratio turned negative, reaching its lowest point at -2.32 on September 30, 2021, signifying that Certara Inc's EBIT was insufficient to cover its interest expenses during that period. However, there has been a gradual improvement since then, with the interest coverage ratio increasing to 2.31 by December 31, 2022.
As of December 31, 2024, the interest coverage ratio stood at -0.27, suggesting some challenges in meeting interest obligations with operating earnings. The fluctuating performance of the interest coverage ratio highlights the importance of monitoring Certara Inc's ability to generate sufficient earnings to cover its interest costs and maintain financial stability.