Schrodinger Inc (SDGR)

Payables 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
Cost of revenue (ttm)	US$ in thousands	75,974	77,537	78,386	78,342	79,933	81,603	80,559	77,028	72,311	66,542	58,332	50,037	44,623
Payables	US$ in thousands	16,815	10,318	12,428	11,987	9,470	10,918	5,263	9,766	8,079	8,228	5,960	7,220	8,398	4,812	5,523	6,675
Payables turnover		4.52	7.51	6.31	6.54	8.44	7.47	15.31	7.89	8.95	8.09	9.79	6.93	5.31

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $75,974K ÷ $16,815K
= 4.52

The payables turnover ratio measures how efficiently a company is able to manage its accounts payable by paying off its suppliers. Schrodinger Inc's payables turnover has displayed variability over the past eight quarters, ranging from a low of 4.52 in Q4 2023 to a high of 15.31 in Q2 2022.

The significant fluctuations in the payables turnover ratio could indicate varying payment practices or supplier relationships. A higher payables turnover ratio suggests that the company is paying off its suppliers more frequently, potentially taking advantage of early payment discounts or maintaining good relationships with suppliers. Conversely, a lower payables turnover ratio may indicate that the company is taking longer to pay its bills, potentially affecting relationships with suppliers or cash flow management.

It may be useful for Schrodinger Inc to further investigate the reasons behind the fluctuations in the payables turnover ratio and consider optimizing its accounts payable management strategies to maintain consistency and efficiency in supplier payments.