Schrodinger Inc (SDGR)

Working capital turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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	207,539	193,348	200,627	188,482	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	100,895	95,058	90,976
Total current assets	US$ in thousands	634,993	456,398	449,179	493,686	567,796	547,761	591,962	603,734	533,989	524,201	556,872	586,168	625,060	622,025	649,788	675,238	682,978	621,114	307,014	312,815
Total current liabilities	US$ in thousands	191,747	111,117	99,759	106,507	133,673	105,038	106,802	123,407	108,799	88,821	85,590	85,532	91,211	72,916	70,378	67,621	73,205	39,276	43,048	42,166
Working capital turnover		0.47	0.56	0.57	0.49	0.50	0.45	0.40	0.41	0.43	0.39	0.35	0.31	0.26	0.23	0.21	0.19	0.18	0.17	0.36	0.34

December 31, 2024 calculation

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

Working capital turnover is a financial ratio that measures how efficiently a company utilizes its working capital to generate sales over a specific period. For Schrodinger Inc, the working capital turnover has shown a fluctuating trend over the reported periods.

The ratio started at a low of 0.34 on March 31, 2020, indicating that for every dollar of working capital invested, the company generated $0.34 in sales. The ratio gradually improved and reached its peak at 0.57 on June 30, 2024. This suggests that the company was able to generate more sales with the same amount of working capital, reflecting improving efficiency in managing its resources.

However, it then decreased to 0.47 by December 31, 2024. This decline may indicate that the company's efficiency in utilizing working capital to generate sales declined during this period.

Overall, the working capital turnover ratio provides insight into how effectively Schrodinger Inc manages its working capital to support its operations and generate revenue. The fluctuating trend highlights the importance of monitoring and optimizing working capital management to maintain operational efficiency and financial performance.