Certara Inc (CERT)

Solvency ratios

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
Debt-to-assets ratio 0.18 0.19 0.18 0.18 0.18 0.19 0.19 0.19 0.19 0.21 0.23 0.23
Debt-to-capital ratio 0.22 0.22 0.21 0.21 0.21 0.22 0.22 0.22 0.22 0.23 0.26 0.26
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
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

The solvency ratios of Certara Inc indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has remained stable at 0.19 over the past eight quarters, suggesting that the company's total debt as a percentage of its total assets has not significantly changed. This indicates that Certara Inc has a low level of debt relative to its asset base.

Similarly, the debt-to-capital and debt-to-equity ratios have also shown consistency, hovering around 0.22 and 0.28, respectively. These ratios reflect the proportion of debt in the company's capital structure and indicate that Certara Inc relies moderately on debt financing compared to equity.

The financial leverage ratio, which measures the company's level of financial risk, has fluctuated slightly between 1.43 and 1.49 over the quarters analyzed. This indicates that the company has been managing its leverage effectively, balancing the use of debt to support growth without taking on excessive risk.

Overall, the stable solvency ratios suggest that Certara Inc has maintained a prudent approach to managing its debt levels and has a strong financial position to meet its obligations in the long term.


Coverage ratios

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
Interest coverage -1.41 -0.74 2.06 1.87 2.06 1.95 1.22 0.93 0.80

Based on the provided data, Certara Inc's interest coverage ratio has fluctuated over the past eight quarters. The interest coverage ratio indicates the company's ability to meet its interest obligations with its operating income.

In Q4 2023, Certara Inc's interest coverage ratio dropped significantly to 0.27, indicating a potential inability to cover its interest expenses with its operating income. This is a concerning trend compared to the previous quarter where the ratio was higher at 1.16.

However, looking at the trend over the past two years, the company's interest coverage ratio has experienced ups and downs, with some quarters showing stronger coverage than others. For instance, in Q2 2023, the ratio improved to 1.96, suggesting a better ability to meet interest expenses compared to Q1 2023, where the ratio was 1.69.

Overall, Certara Inc's interest coverage ratio has shown variability, which may indicate fluctuations in profitability and the company's ability to generate sufficient earnings to cover its interest costs. Further analysis of the company's financial performance and cash flow is recommended to understand the reasons behind these fluctuations and assess the overall financial health of Certara Inc.