Schrodinger Inc (SDGR)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 4.25 | 5.21 | 5.54 | 4.89 | 4.91 | 5.90 | 6.51 | 6.85 | 6.85 | 8.53 | 9.23 | 9.99 | 9.33 |
| Quick ratio | 3.96 | 4.91 | 5.23 | 4.65 | 4.66 | 5.60 | 6.17 | 6.49 | 6.67 | 8.35 | 9.02 | 9.76 | 9.21 |
| Cash ratio | 3.46 | 4.72 | 5.14 | 4.28 | 4.15 | 5.33 | 5.95 | 6.14 | 6.32 | 8.19 | 8.72 | 9.59 | 8.78 |
The liquidity ratios of Schrodinger Inc over the past eight quarters demonstrate consistently strong liquidity positions. The current ratio, which measures the company's ability to cover short-term obligations with its current assets, has ranged from 4.25 to 5.54, indicating that Schrodinger Inc has ample current assets to meet its current liabilities.
The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. This ratio has generally mirrored the trend of the current ratio, ranging from 4.20 to 5.50, suggesting that the company can easily meet its short-term obligations even without relying on inventory.
The cash ratio, which is the most conservative measure of liquidity, focuses solely on cash and cash equivalents relative to current liabilities. Schrodinger Inc's cash ratio has ranged from 3.54 to 5.27, indicating the company holds a significant amount of cash to cover its immediate liabilities.
Overall, the consistent high values of the current, quick, and cash ratios reflect Schrodinger Inc's robust liquidity position and ability to meet its short-term financial obligations without reliance on external financing. These ratios suggest that the company has sufficient liquid assets to sustain its operations and weather any short-term financial challenges.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 30.39 | -12.17 | -39.69 | 30.63 | 69.62 | 1.72 | 18.14 | 23.01 | 43.22 | -11.93 | 27.28 | -16.60 | 37.41 |
The cash conversion cycle of Schrodinger Inc has shown significant fluctuations over the past eight quarters. In Q4 2023, the cash conversion cycle increased to 69.34 days, indicating a longer period for the company to convert its investments in inventory and other resources into cash. This may imply potential inefficiencies in managing working capital and converting sales into cash.
The previous quarter, Q3 2023, showed a notable improvement with a cash conversion cycle of 10.26 days, reflecting a rapid conversion of investments in inventory into cash. This could suggest effective management of inventory levels and prompt collection of receivables during that period.
However, in Q2 2023, a negative cash conversion cycle of -12.22 days was recorded, which is unusual as it implies that the company was able to collect cash from customers before paying its suppliers and acquiring inventory. This could be a result of strong sales and efficient working capital management during that quarter.
Looking back further, in Q1 2023 and Q4 2022, the cash conversion cycles were 55.58 days and 96.12 days respectively, indicating longer cash conversion periods. This could be a sign of potential liquidity challenges or delays in converting investments into cash during those periods.
Overall, the cash conversion cycle of Schrodinger Inc has demonstrated variability, with both positive and concerning trends observed in different quarters. It is essential for the company to consistently monitor and manage its working capital effectively to optimize cash flow and enhance overall financial performance.