Schrodinger Inc (SDGR)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|
| Inventory turnover | — | — | — | — |
| Receivables turnover | 3.28 | 3.23 | 4.35 | 3.44 |
| Payables turnover | 4.52 | 8.44 | 8.95 | 5.31 |
| Working capital turnover | 0.50 | 0.43 | 0.26 | 0.18 |
Inventory turnover was not provided in the table, so we are unable to analyze this activity ratio for Schrodinger Inc. However, examining the other activity ratios:
1. Receivables turnover: Schrodinger Inc's receivables turnover has been declining over the past five years, from 3.32 in 2019 to 2.43 in 2023. This indicates that the company is collecting its accounts receivable at a slower rate compared to previous years.
2. Payables turnover: The payables turnover for Schrodinger Inc fluctuated over the years, with a significant decrease from 10.34 in 2019 to 4.52 in 2023. A lower payables turnover could imply that the company is taking longer to pay its suppliers or managing its payables inefficiently.
3. Working capital turnover: Schrodinger Inc's working capital turnover has generally been low, with a slight increase from 0.18 in 2020 to 0.50 in 2023. This suggests that the company is not utilizing its working capital as efficiently to generate sales revenue.
In conclusion, Schrodinger Inc may need to review its receivables and payables management practices to improve efficiency in collection and payment cycles. The company's working capital turnover shows room for enhancement in utilizing its resources effectively for revenue generation.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — |
| Days of sales outstanding (DSO) | days | 111.17 | 112.86 | 84.00 | 106.10 |
| Number of days of payables | days | 80.78 | 43.24 | 40.78 | 68.69 |
Based on the given data, we can analyze Schrodinger Inc's activity ratios as follows:
1. Days of Inventory on Hand (DOH): Unfortunately, the information regarding days of inventory on hand for Schrodinger Inc is not available for the years presented. This ratio typically measures how many days a company takes to sell its average inventory. Without this data, we are unable to assess the efficiency of Schrodinger Inc in managing its inventory levels.
2. Days of Sales Outstanding (DSO): The days of sales outstanding have shown an increasing trend over the past five years, ranging from 107.31 days in 2021 to 150.13 days in 2023. This indicates that Schrodinger Inc is taking longer to collect its accounts receivable from customers. A higher DSO value may point to potential issues with credit policies, collection procedures, or customer creditworthiness that could impact the company's cash flow and liquidity.
3. Number of Days of Payables: The number of days of payables has fluctuated over the years, ranging from 35.29 days in 2019 to 80.78 days in 2023. A higher number of days of payables suggests that Schrodinger Inc is taking longer to pay its suppliers, which could be a deliberate strategy to manage cash flow or could potentially strain relationships with suppliers if payment terms are extended excessively.
In summary, while the information on days of inventory on hand is not available, the days of sales outstanding and number of days of payables provide insights into Schrodinger Inc's management of receivables and payables. The increasing trend in DSO and fluctuating trend in days of payables highlight areas where Schrodinger Inc may need to further analyze and potentially improve its working capital management practices to optimize cash flow and strengthen its financial position.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|
| Fixed asset turnover | 5.22 | 12.70 | 13.76 | 21.03 |
| Total asset turnover | 0.27 | 0.26 | 0.18 | 0.14 |
The fixed asset turnover ratio for Schrodinger Inc has seen a decreasing trend over the past five years, indicating that the company is generating less revenue from its fixed assets in recent years. Specifically, the ratio has decreased from 21.03 in 2020 to 9.29 in 2023, showing a significant decline in the efficiency of utilizing fixed assets to generate sales.
On the other hand, the total asset turnover ratio has fluctuated over the same period, displaying a mixed performance. The ratio has generally remained below 1, suggesting that Schrodinger Inc is not efficiently utilizing its total assets to generate revenue. However, there was a significant increase in the ratio from 0.14 in 2020 to 0.27 in 2023, indicating an improvement in the company's ability to generate sales relative to its total assets.
Overall, Schrodinger Inc's long-term activity ratios reveal a need for further analysis to understand the factors driving the changes in efficiency and asset utilization within the company.