Schrodinger Inc (SDGR)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	216,666	180,955	137,931	108,095
Property, plant and equipment	US$ in thousands	41,475	14,244	10,025	5,140
Fixed asset turnover		5.22	12.70	13.76	21.03

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $216,666K ÷ $41,475K
= 5.22

Schrodinger Inc's fixed asset turnover has shown a declining trend over the past five years, from 13.65 in 2019 to 9.29 in 2023. This indicates that the company is generating less revenue for each dollar invested in fixed assets. A lower fixed asset turnover ratio could signify inefficiency in asset utilization or potential underperformance in sales. It is essential for the company to closely monitor and assess its asset management strategies and operations to improve the efficiency of its fixed asset utilization and overall financial performance.