Schrodinger Inc (SDGR)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 3.31 | 4.11 | 4.50 | 4.64 | 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 | 15.81 | 7.13 | 7.42 |
| Quick 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 |
| 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 |
Schrodinger Inc's liquidity ratios, specifically the current ratio, quick ratio, and cash ratio, have been showing a declining trend over the periods analyzed from March 31, 2020, to December 31, 2024. The current ratio, which indicates the company's ability to cover short-term liabilities with short-term assets, decreased from 7.42 on March 31, 2020, to 3.31 on December 31, 2024. This declining trend may raise concerns about the company's ability to meet its short-term obligations in the future.
Similarly, the quick ratio, a more stringent measure of liquidity as it excludes inventory from current assets, also exhibited a decreasing trend from 6.84 on March 31, 2020, to 1.84 on December 31, 2024. This suggests that Schrodinger Inc may have limited ability to pay off its current liabilities using its most liquid assets.
The cash ratio, which is the most conservative liquidity ratio focusing solely on cash and cash equivalents, followed a similar downward trajectory, declining from 6.84 on March 31, 2020, to 1.84 on December 31, 2024. This implies that the company may have less cash available to meet its immediate payment obligations.
Overall, the declining trend in all three liquidity ratios indicates a potential liquidity risk for Schrodinger Inc as its ability to meet short-term obligations with liquid assets has weakened over the analyzed period. It would be crucial for the company to closely monitor its liquidity position and consider implementing strategies to improve its short-term financial health.
Additional liquidity measure
| 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 conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
The cash conversion cycle of Schrodinger Inc has remained consistently at 0.00 days from March 31, 2020, to December 31, 2024, indicating that the company efficiently converts its resources into cash. A cash conversion cycle of 0.00 days implies that Schrodinger Inc effectively manages its receivables, inventory, and payables, resulting in minimal time taken to convert products into cash.
This efficient management of the cash conversion cycle suggests that Schrodinger Inc has streamlined its operational processes, allowing for quick turnover of cash, which is essential for maintaining liquidity and financial stability. Overall, the company's ability to maintain a low or zero cash conversion cycle reflects its strong working capital management practices and operational efficiency.