Schrodinger Inc (SDGR)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 75,974 | 79,933 | 72,311 | 44,623 |
| Payables | US$ in thousands | 16,815 | 9,470 | 8,079 | 8,398 |
| Payables turnover | 4.52 | 8.44 | 8.95 | 5.31 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $75,974K ÷ $16,815K
= 4.52
The payables turnover ratio for Schrodinger Inc has fluctuated over the past five years. In 2023, the payables turnover was 4.52, indicating that the company converted its accounts payables into cash 4.52 times during the year. This represents a decrease from the previous year, where the ratio was 8.44.
The decreasing trend in payables turnover could suggest that the company is taking longer to pay its suppliers, which may indicate strained liquidity or changing payment terms with vendors. On the other hand, a higher payables turnover ratio may indicate efficient management of payable obligations and strong supplier relationships.
It is important for stakeholders to closely monitor changes in the payables turnover ratio to assess the company's ability to manage its working capital effectively and maintain healthy relationships with suppliers.
Peer comparison
Dec 31, 2023