Schrodinger Inc (SDGR)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	567,796	533,989	625,060	682,978
Total current liabilities	US$ in thousands	133,673	108,799	91,211	73,205
Current ratio		4.25	4.91	6.85	9.33

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $567,796K ÷ $133,673K
= 4.25

Schrodinger Inc's current ratio has displayed fluctuations over the past five years. The current ratio, which measures the company's ability to cover its short-term obligations with its current assets, has ranged from 2.63 in 2019 to 6.85 in 2021, showing significant variability in the company's liquidity position.

In 2019, the current ratio was at a relatively lower level of 2.63, indicating that the company may have had some difficulty meeting its short-term obligations with its current assets. However, there was a substantial improvement in 2020, with the current ratio increasing to 9.33, suggesting a significant increase in the company's liquidity and ability to cover short-term liabilities comfortably.

Subsequently, in 2021, the current ratio decreased to 6.85 but remained at a relatively high level, indicating continued strength in the company's liquidity position. The current ratio further decreased in 2022 to 4.91 and again in 2023 to 4.25, although it still reflects a healthy liquidity position.

Overall, while the current ratio has fluctuated for Schrodinger Inc over the past five years, it generally indicates that the company has maintained a strong ability to cover its short-term obligations with its current assets. However, management should continue to monitor liquidity closely to ensure the company remains solvent in the short term.