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 Sep 30, 2020 Jun 30, 2020 Mar 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 567,796 547,761 591,962 603,734 533,989 524,201 556,872 586,168 625,060 622,025 649,788 675,238 682,978 621,114 307,014 312,815
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 39,276 43,048 42,166
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.


Peer comparison

Dec 31, 2023