Schrodinger Inc (SDGR)

Working capital turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenue US$ in thousands 207,539 216,666 180,955 137,931 108,095
Total current assets US$ in thousands 634,993 567,796 533,989 625,060 682,978
Total current liabilities US$ in thousands 191,747 133,673 108,799 91,211 73,205
Working capital turnover 0.47 0.50 0.43 0.26 0.18

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $207,539K ÷ ($634,993K – $191,747K)
= 0.47

Schrodinger Inc's working capital turnover has shown an improving trend over the years. The ratio increased significantly from 0.18 in December 31, 2020, to 0.26 in December 31, 2021, indicating a more efficient management of working capital in the business operations. This improvement continued with a further increase to 0.43 by December 31, 2022, and reached 0.50 by December 31, 2023, demonstrating an enhanced ability to generate revenue from the company's working capital.

However, there was a slight decrease in the working capital turnover to 0.47 by December 31, 2024. Despite this small decline, the overall trend suggests that Schrodinger Inc has been utilizing its working capital more effectively to support its operations and generate sales. It is important for the company to continue monitoring and managing its working capital efficiently to sustain this positive trend in the future.