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CERT (Certara) Degree of Operating Leverage : -14.25 (As of Mar. 2025)


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What is Certara Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Certara's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -14.25. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Certara's Degree of Operating Leverage or its related term are showing as below:

CERT's Degree of Operating Leverage is ranked better than
88.75% of 640 companies
in the Healthcare Providers & Services industry
Industry Median: 0.515 vs CERT: -14.25

Certara Degree of Operating Leverage Historical Data

The historical data trend for Certara's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Certara Degree of Operating Leverage Chart

Certara Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial -13.81 -8.81 9.90 -33.80 -13.05

Certara Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -43.60 -72.15 -7.72 -13.05 -14.25

Competitive Comparison of Certara's Degree of Operating Leverage

For the Health Information Services subindustry, Certara's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Certara's Degree of Operating Leverage Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Certara's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Certara's Degree of Operating Leverage falls into.


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Certara Degree of Operating Leverage Calculation

Certara's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 13.367 (Mar. 2025) / -39.854 (Mar. 2024) - 1 )/( 394.498 (Mar. 2025) / 360.69 (Mar. 2024) - 1 )
=-1.3354/0.0937
=-14.25***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Certara  (NAS:CERT) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Certara Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Certara's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Certara Business Description

Traded in Other Exchanges
Address
4 Radnor Corporate Center, Suite 350, Radnor, PA, USA, 08540
Certara Inc accelerates medicines to patients using biosimulation software and technology to transform traditional drug discovery and development. It provides modeling and simulation, regulatory science, and assessment software and services to help clients reduce clinical trials, accelerate regulatory approval and increase patient access to medicines. The company has its business presence in the Americas which is also it key revenue generating market, EMEA and Asia Pacific region.
Executives
Patrick F Smith officer: PRESIDENT, INTEGRATED DRUG DEV C/O CERTARA, INC., 100 OVERLOOK CENTER, SUITE 101, PRINCETON NJ 08540
Leif E Pedersen officer: President, Software 10188 TELESIS COURT, SUITE 100, SAN DIEGO CA 92121
Richard M. Traynor officer: See Remarks 1114 AVENUE OF THE AMERICAS, 45TH FLOOR, NEW YORK NY 10036
Eran Broshy director C/O VENTIV HEALTH, 200 COTTONTAIL LN. VANTAGE COURT N., SOMERSET NJ 08873
John E Gallagher officer: CHIEF FINANCIAL OFFICER BECTON, DICKINSON AND COMPANY, FRANKLIN LAKES NJ 07417
Arsenal Saturn Holdings Lp 10 percent owner C/O ARSENAL CAPITAL PARTNERS, 100 PARK AVENUE, 31ST FLOOR, NEW YORK NY 10017
Jeffrey B. Kovach 10 percent owner C/O ARSENAL CAPITAL PARTNERS, 100 PARK AVENUE, 31ST FLOOR, NEW YORK NY 10017
Arsenal Capital Partners Iii-b Lp 10 percent owner 100 PARK AVENUE, 31ST FLOOR, NEW YORK NY 10017
Terrence M. Mullen 10 percent owner C/O ARSENAL CAPITAL PARTNERS, 100 PARK AVENUE, 31ST FLOOR, NEW YORK NY 10017
Eqt Avatar Parent L.p. 10 percent owner 100 OVERLOOK CENTER, SUITE 101, PRINCETON NJ 08540
Arsenal Capital Investment Iii Lp 10 percent owner C/O ARSENAL CAPITAL PARTNERS, 100 PARK AVENUE, 31ST FLOOR, NEW YORK NY 10017
Arsenal Capital Investment Vi Lp 10 percent owner C/O ARSENAL CAPITAL PARTNERS, 100 PARK AVENUE, 31ST FLOOR, NEW YORK NY 10017
Arsenal Capital Partners Iii Lp 10 percent owner 100 PARK AVENUE, 31ST FLOOR, NEW YORK NY 10017
David Spaight director 100 OVERLOOK CENTER, SUITE 101, PRINCETON NJ 08540
Mason P Slaine director 2777 SUMMER STREET, SUITE 209, STAMFORD CT 06905