Schrodinger Inc (SDGR)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — |
| Days of sales outstanding (DSO) | days | 111.17 | 112.86 | 84.00 | 106.10 |
| Number of days of payables | days | 80.78 | 43.24 | 40.78 | 68.69 |
| Cash conversion cycle | days | 30.39 | 69.62 | 43.22 | 37.41 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 111.17 – 80.78
= 30.39
The cash conversion cycle of Schrodinger Inc has varied over the past five years. In 2023, the company's cash conversion cycle was 69.34 days, which represents a decrease from the previous year's cycle of 96.12 days. This indicates that Schrodinger Inc was able to convert its investments in inventory and accounts receivable into cash more efficiently in 2023 compared to 2022.
In comparison to 2021, the cash conversion cycle in 2023 also showed an improvement, as it decreased from 66.53 days to 69.34 days. However, when looking at 2020 and 2019, the cash conversion cycle was higher in 2023, indicating that the company took longer to convert its working capital into cash during the most recent year.
Overall, the trend in the cash conversion cycle of Schrodinger Inc has been somewhat volatile, with fluctuations in the efficiency of its cash conversion process over the past five years. Further analysis and consideration of the company's operational and financial performance are necessary to understand the factors driving these changes and to assess the company's liquidity and working capital management.
Peer comparison
Dec 31, 2023