Schrodinger Inc (SDGR)

Cash ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Cash and cash equivalents	US$ in thousands	147,326	160,416	108,109	130,236	161,066	249,378	285,963	233,206	90,474	102,817	127,319	117,257	120,267	160,879	117,699	133,122	202,296	210,490	110,380	144,749
Short-term investments	US$ in thousands	204,798	228,263	269,180	300,843	307,688	246,905	262,710	294,482	360,613	370,739	382,246	408,275	456,212	436,307	495,892	515,372	440,395	388,494	173,646	143,505
Total current liabilities	US$ in thousands	191,747	111,117	99,759	106,507	133,673	105,038	106,802	123,407	108,799	88,821	85,590	85,532	91,211	72,916	70,378	67,621	73,205	39,276	43,048	42,166
Cash ratio		1.84	3.50	3.78	4.05	3.51	4.72	5.14	4.28	4.15	5.33	5.95	6.14	6.32	8.19	8.72	9.59	8.78	15.25	6.60	6.84

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 exhibited fluctuations over the past few years based on the provided data. The ratio started at a relatively high level of 6.84 on March 31, 2020, indicating the company's ability to cover its short-term liabilities solely with cash and cash equivalents. The ratio remained relatively stable around 6.6 to 9.59 until March 31, 2021.

However, there was a significant increase in the cash ratio to 15.25 on September 30, 2020, suggesting a substantial improvement in the company's liquidity position. This elevated level was sustained for a brief period before declining to around 8.19 to 6.14 by March 31, 2022.

From there, the cash ratio witnessed a steady decline over the subsequent quarters, reaching 1.84 by December 31, 2024. This downward trend indicates a decreasing ability to cover short-term obligations with available cash and cash equivalents.

Overall, the cash ratio trend suggests that Schrodinger Inc may have faced liquidity challenges in the latter years due to a declining cash reserve relative to its current liabilities. Management may need to monitor the company's liquidity position closely and consider strategies to enhance cash reserves to ensure continued financial stability.