Schrodinger Inc (SDGR)

Working capital 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
Revenue (ttm)	US$ in thousands	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
Total current assets	US$ in thousands	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
Total current liabilities	US$ in thousands	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
Working capital turnover		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

December 31, 2023 calculation

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

To analyze Schrodinger Inc's working capital turnover, we consider how efficiently the company is utilizing its working capital to generate revenue over multiple quarters. The working capital turnover ratio is calculated by dividing net sales by average working capital. A higher ratio indicates that the company is effectively using its working capital to generate revenue.

Looking at the data provided, we observe fluctuations in Schrodinger Inc's working capital turnover ratio. In Q4 2023, the ratio was 0.50, which indicates that the company generated $0.50 in revenue for every $1 of working capital invested. This is an improvement from the previous quarter's ratio of 0.45.

Overall, Schrodinger Inc's working capital turnover has been trending upward since Q1 2022, where it was at 0.31. This suggests that the company has been improving its efficiency in utilizing working capital to drive revenue growth.

It is important for Schrodinger Inc to continue monitoring and managing its working capital effectively to sustain this positive trend in working capital turnover, as it reflects the company's ability to convert working capital into revenue efficiently.