Schrodinger Inc (SDGR)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 147,326 | 155,315 | 90,474 | 120,267 | 202,296 |
| Short-term investments | US$ in thousands | 204,798 | 307,688 | 360,613 | 456,212 | 440,395 |
| Total current liabilities | US$ in thousands | 191,747 | 133,673 | 108,799 | 91,211 | 73,205 |
| Cash ratio | 1.84 | 3.46 | 4.15 | 6.32 | 8.78 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($147,326K
+ $204,798K)
÷ $191,747K
= 1.84
The cash ratio of Schrodinger Inc has shown a declining trend over the years, decreasing from 8.78 on December 31, 2020, to 6.32 on December 31, 2021, further dropping to 4.15 on December 31, 2022, then to 3.46 on December 31, 2023, and finally reaching 1.84 on December 31, 2024.
This decreasing trend indicates that the company may be holding less cash in proportion to its current liabilities over time. A high cash ratio is generally considered favorable as it indicates the company has sufficient liquid assets to cover its short-term obligations. On the other hand, a declining cash ratio may raise concerns about the company's liquidity and ability to meet its short-term financial obligations solely from its cash reserves.
It is important for Schrodinger Inc to carefully monitor its cash levels and ensure that it maintains an adequate cash reserve to meet its short-term liabilities while also considering opportunities for efficient cash management and investment to optimize its financial position.
Peer comparison
Dec 31, 2024