Schrodinger Inc (SDGR)

Quick ratio

		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	US$ in thousands	155,315	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	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
Receivables	US$ in thousands	65,992	19,884	9,652	46,691	55,953	23,583	18,767	29,321	31,744	11,352	21,359	11,270	31,423	12,290	13,849	16,272
Total current liabilities	US$ in thousands	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
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	15.56	6.92	7.22

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, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations using its most liquid assets. A quick ratio above 1 indicates that a company has enough liquid assets to cover its current liabilities.

In the case of Schrodinger Inc, the quick ratio has been consistently above 1 for the past eight quarters, indicating a strong liquidity position. The quick ratio ranged from 4.20 to 5.50 in the most recent quarters, which suggests that the company has ample liquid assets to cover its short-term obligations.

The increasing trend in the quick ratio from Q1 2022 to Q2 2023 indicates a strengthening liquidity position over time. This improvement may be attributed to efficient management of current assets, including cash, marketable securities, and accounts receivable.

Overall, based on the quick ratio analysis, Schrodinger Inc appears to have a robust liquidity position and the ability to meet its short-term obligations comfortably.