Schrodinger Inc (SDGR)

Working capital 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
Total current assets	US$ in thousands	567,796	533,989	625,060	682,978
Total current liabilities	US$ in thousands	133,673	108,799	91,211	73,205
Working capital turnover		0.50	0.43	0.26	0.18

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $216,666K ÷ ($567,796K – $133,673K)
= 0.50

Schrodinger Inc's working capital turnover has fluctuated over the past five years, ranging from 0.18 to 1.16. A working capital turnover ratio of 0.50 in 2023 indicates that, on average, the company generated $0.50 of revenue for every $1 of working capital invested during the year. This suggests that the company efficiently managed its working capital to generate sales.

The increasing trend in the working capital turnover ratio from 0.18 in 2020 to 0.50 in 2023 indicates an improvement in the company's efficiency in utilizing its working capital. However, the significant drop from 1.16 in 2019 to 0.18 in 2020 could be a cause for concern, suggesting that the company may have struggled to generate revenue relative to its working capital during that year.

Overall, Schrodinger Inc's working capital turnover ratio reflects fluctuations in its operational efficiency in utilizing working capital to generate sales over the years. Further analysis of the company's financial performance and operational activities would be required to understand the underlying factors driving these changes in the working capital turnover ratio.