Schrodinger Inc (SDGR)

Schrodinger Inc's liquidity ratios demonstrate a declining trend over the years. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has decreased from 9.33 in 2020 to 3.31 in 2024. This indicates a significant decrease in the company's liquidity position over the period.

Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also shown a decreasing trend from 8.78 in 2020 to 1.84 in 2024. This suggests that Schrodinger Inc may face challenges in meeting its short-term obligations without relying on inventory.

The cash ratio, which is the most conservative liquidity ratio and measures a company's ability to cover its current liabilities with its cash and cash equivalents, has also decreased from 8.78 in 2020 to 1.84 in 2024. This decline indicates a reduction in the company's ability to meet its short-term obligations using only its cash reserves.

Overall, the decreasing trend in Schrodinger Inc's liquidity ratios over the years raises concerns about the company's ability to efficiently manage its short-term financial obligations. It is essential for the company to closely monitor its liquidity position and take necessary steps to improve its current asset management to ensure financial stability in the future.

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Additional liquidity measure

Schrodinger Inc has consistently maintained a cash conversion cycle of 0.00 days throughout the years 2020 to 2024. This indicates that the company is efficiently managing its cash flows, effectively converting its investments into cash without delays. A cash conversion cycle of zero days signifies that Schrodinger Inc is able to quickly convert its resources into revenue, demonstrating strong liquidity and operational efficiency in its financial management.