Schrodinger Inc (SDGR)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	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
Receivables	US$ in thousands	65,992	55,953	31,744	31,423
Total current liabilities	US$ in thousands	133,673	108,799	91,211	73,205
Quick ratio		3.96	4.66	6.67	9.21

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($155,315K + $307,688K + $65,992K) ÷ $133,673K
= 3.96

The quick ratio of Schrodinger Inc has shown fluctuations over the past five years. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A higher quick ratio is generally seen as favorable as it indicates that the company has a strong ability to cover its current liabilities using its liquid assets.

Looking at the trend for Schrodinger Inc, the quick ratio has decreased from 9.32 in 2020 to 4.20 in 2023. This decline may raise concerns about the company's liquidity position in the most recent year. However, it is important to note that the quick ratio of 4.20 in 2023 still indicates that the company has a strong ability to cover its short-term liabilities with its liquid assets.

The quick ratio was particularly high in 2021 at 6.82, indicating a very strong liquidity position that year. The significant decrease in 2020 was followed by a gradual increase until 2022 before a notable drop in 2023. Overall, while the quick ratio has fluctuated, Schrodinger Inc has generally maintained a healthy liquidity position over the five-year period, although attention may be warranted to monitor the recent decline in the ratio.