Schrodinger Inc (SDGR)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	155,315	90,474	120,267	202,296
Short-term investments	US$ in thousands	307,688	360,613	456,212	440,395
Total current liabilities	US$ in thousands	133,673	108,799	91,211	73,205
Cash ratio		3.46	4.15	6.32	8.78

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($155,315K + $307,688K) ÷ $133,673K
= 3.46

The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet these obligations without relying on other sources of liquidity.

Schrodinger Inc's cash ratio has varied significantly over the past five years. In 2023, the cash ratio was 3.54, showing a decrease from the previous year. This suggests that the company may have a slightly lower ability to cover its short-term liabilities with its existing cash reserves in 2023 compared to 2022.

Comparing 2023 to earlier years, the cash ratio is still higher than in 2019, indicating an improvement in the company's liquidity position over the long term. However, the cash ratio in 2023 is lower than in 2020 and 2021, suggesting a potential decrease in liquidity over the last two years.

Overall, while Schrodinger Inc's cash ratio has fluctuated, it remains at a level that indicates a reasonable ability to cover short-term obligations with available cash. It is important for the company to continue monitoring and managing its liquidity position to ensure it can meet its financial obligations effectively in the future.