Schrodinger Inc (SDGR)

Days of sales outstanding (DSO)

		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
Receivables turnover		3.28	10.03	20.08	4.22	3.23	7.22	8.69	5.27	4.35	10.99	5.65	10.12	3.44
DSO	days	111.17	36.40	18.18	86.48	112.86	50.55	41.99	69.28	84.00	33.20	64.57	36.07	106.10

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.28
= 111.17

Schrodinger Inc's Days Sales Outstanding (DSO) has shown significant fluctuations over the past eight quarters. In Q4 2023, the DSO spiked to 150.13 days, marking a notable increase from the previous quarter's figure of 58.83 days. This substantial jump may indicate potential challenges in collecting accounts receivable promptly.

The DSO in Q4 2023 is considerably higher compared to Q3 and Q2 of 2023, suggesting a possible slowdown in the company's collection process or an increase in credit sales. It is worth noting that the DSO in Q4 2023 is significantly higher than in the same quarter of the previous year, indicating a worsening trend in collecting payments from customers.

In contrast, the DSO in Q1 2023 was 111.43 days, which was higher than in Q2 2023 and Q3 2023. This may suggest that the company faced difficulties in collecting payments during that period.

Overall, the fluctuating DSO figures for Schrodinger Inc indicate potential challenges in managing accounts receivable and collecting payments efficiently. Further analysis of the company's credit policies, customer payment behavior, and industry trends may be necessary to address these fluctuations and improve cash flow management.