Schrodinger Inc (SDGR)
Liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|
| Current ratio | 4.25 | 4.91 | 6.85 | 9.33 |
| Quick ratio | 3.96 | 4.66 | 6.67 | 9.21 |
| Cash ratio | 3.46 | 4.15 | 6.32 | 8.78 |
Schrodinger Inc's liquidity ratios have generally shown a strong trend over the past five years. The current ratio, a measure of the company's ability to cover its short-term liabilities with its current assets, has decreased from 9.33 in 2020 to 4.25 in 2023, indicating a potential decrease in short-term liquidity. However, the current ratio remains above 1 in all years, indicating that the company has more than enough current assets to cover its current liabilities.
The quick ratio, which provides a more conservative measure of liquidity by excluding inventories from current assets, follows a similar trend to the current ratio. The quick ratio has decreased from 9.32 in 2020 to 4.20 in 2023, remaining above 1 in all years and showing a strong ability to meet short-term obligations without relying on inventory.
The cash ratio, which is the most stringent measure of liquidity since it only considers cash and cash equivalents to cover current liabilities, has also decreased over the years but remains above 1 in all years. The cash ratio decreased from 8.84 in 2020 to 3.54 in 2023, indicating a slight decrease in the company's ability to cover short-term obligations with cash on hand.
Overall, Schrodinger Inc's liquidity ratios show a strong ability to meet its short-term obligations in all years, although there has been a slight decrease in liquidity over the past few years. The company should continue to monitor its liquidity ratios to ensure it can meet its short-term financial commitments effectively.
Additional liquidity measure
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Cash conversion cycle | days | 30.39 | 69.62 | 43.22 | 37.41 |
The cash conversion cycle of Schrodinger Inc has shown variations over the past five years.
In 2023, the cash conversion cycle decreased to 69.34 days from 96.12 days in 2022. This indicates an improvement in the company's ability to efficiently convert its investments in inventory and other resources into cash.
However, compared to 2021 where the cash conversion cycle was 66.53 days, Schrodinger Inc took slightly longer to convert its investments into cash in 2023.
The trend in the cash conversion cycle over the past five years shows fluctuations, with a notable low of 50.77 days in 2020 and a peak of 96.12 days in 2022. Overall, the company has shown some variability in managing its cash conversion cycle efficiency over this period.