Schrodinger Inc (SDGR)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	216,666	199,383	193,794	197,074	180,955	170,282	163,152	154,467	137,931	124,793	120,740	114,048	108,095
Property, plant and equipment	US$ in thousands	41,475	22,498	20,353	16,493	14,244	13,755	11,524	11,120	10,025	9,074	6,985	4,799	5,140	5,296	5,837	6,488
Fixed asset turnover		5.22	8.86	9.52	11.95	12.70	12.38	14.16	13.89	13.76	13.75	17.29	23.76	21.03

December 31, 2023 calculation

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

Schrodinger Inc's fixed asset turnover ratio has shown fluctuations over the past eight quarters. The ratio measures how efficiently the company is generating revenue from its investment in fixed assets.

In Q4 2023, the fixed asset turnover was 9.29, which indicates that the company generated approximately $9.29 in revenue for every dollar invested in fixed assets during that quarter. This represented a slight decrease from Q3 2023's ratio of 8.86.

Looking further back, the company experienced a notable decrease in fixed asset turnover from Q1 2023 to Q4 2022, where the ratio dropped from 11.95 to 12.70 respectively. This suggests that the company may have been less efficient in utilizing its fixed assets to generate revenue during that period.

Despite these fluctuations, Schrodinger Inc generally maintained a relatively high fixed asset turnover ratio throughout the analyzed quarters, indicating efficient utilization of fixed assets to generate revenue. However, the trend of declining ratios from Q1 2023 to Q4 2022 may warrant further investigation into the company's asset management strategies and operational efficiency.