Schrodinger Inc (SDGR)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 63.64% | 64.93% | 55.83% | 47.57% | 58.72% |
| Operating profit margin | -100.85% | -81.90% | -82.41% | -80.80% | -56.35% |
| Pretax margin | -89.48% | 19.81% | -82.41% | -73.09% | -24.32% |
| Net profit margin | -90.16% | 18.79% | -82.45% | -73.38% | -24.64% |
Schrodinger Inc's profitability ratios paint a mixed picture over the five-year period. The gross profit margin has shown fluctuation, ranging from a high of 64.93% in December 2023 to a low of 47.57% in December 2021. This indicates variability in the company's ability to generate profits from its core operations.
On the other hand, the operating profit margin and pretax margin have mostly been negative, with the operating profit margin hitting a low of -100.85% in December 2024. This suggests that Schrodinger Inc has struggled to control its operating expenses and generate profits before and after accounting for taxes.
The net profit margin, which reflects the company's bottom line profitability, has also been predominantly negative, with the worst performance recorded in December 2024 at -90.16%. This indicates that after accounting for all expenses, including taxes, Schrodinger Inc has faced challenges in translating its revenue into sustainable profits.
Overall, while the gross profit margin reflects the company's ability to generate revenue, the negative operating, pretax, and net profit margins signify operational inefficiencies and financial challenges that Schrodinger Inc needs to address to improve its overall profitability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -25.42% | -22.10% | -21.66% | -14.73% | -8.16% |
| Return on assets (ROA) | -22.73% | 5.07% | -21.67% | -13.38% | -3.57% |
| Return on total capital | 0.00% | -32.35% | -32.78% | -20.01% | -9.76% |
| Return on equity (ROE) | -44.40% | 7.42% | -33.31% | -18.17% | -4.27% |
Schrodinger Inc's profitability ratios depict a concerning trend over the period from December 31, 2020, to December 31, 2024. The Operating Return on Assets (Operating ROA) has shown a consistent decline from -8.16% in 2020 to -25.42% in 2024, indicating the company's inefficiency in generating operating profits from its assets.
Similarly, the Return on Assets (ROA) witnessed fluctuations but remained mainly negative, with a significant drop from -3.57% in 2020 to -22.73% in 2024. This signifies that Schrodinger Inc struggled to generate profits relative to its total assets during this period.
The Return on Total Capital, reflecting the company's ability to generate returns for both shareholders and debt holders, showed a decline from -9.76% in 2020 to 0.00% in 2024. This suggests that the company may have faced challenges in effectively utilizing its total capital to generate returns.
Moreover, the Return on Equity (ROE) demonstrated volatility, starting at -4.27% in 2020, peaking at 7.42% in 2023, and then dropping sharply to -44.40% in 2024. This indicates fluctuations in the company's ability to generate profits for its shareholders from the equity invested.
In summary, Schrodinger Inc's profitability ratios highlight persistent challenges in generating profits from its assets, capital, and equity over the analyzed period, which may necessitate a closer examination of its operational efficiency and financial management practices.