Schrodinger Inc (SDGR)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|
| Gross profit margin | 64.93% | 55.83% | 47.57% | 58.72% |
| Operating profit margin | -81.90% | -81.13% | -80.80% | -56.35% |
| Pretax margin | 19.81% | -82.41% | -72.49% | -22.31% |
| Net profit margin | 18.79% | -82.44% | -72.78% | -22.63% |
Schrodinger Inc's profitability ratios have shown varying trends over the past five years. The gross profit margin has generally been on an upward trajectory, reaching its peak at 64.93% in 2023 from 47.57% in 2021. This indicates an improvement in the company's ability to generate revenues after accounting for the cost of goods sold.
However, the operating profit margin and pretax margin have been negative in recent years, with significant declines in profitability. The operating profit margin worsened from -56.35% in 2020 to -81.90% in 2023, reflecting increasing operating expenses relative to revenues. Similarly, the pretax margin deteriorated from -24.32% in 2020 to 19.81% in 2023, signaling challenges in managing costs and expenses efficiently.
Despite the negative trends in operating and pretax margins, Schrodinger Inc has shown positive net profit margins in the past two years. The net profit margin improved from -28.72% in 2019 to 18.79% in 2023, indicating that the company has managed to control its after-tax profitability relative to revenues.
Overall, Schrodinger Inc's profitability ratios suggest a mixed performance, with improvements in gross and net profit margins, but ongoing challenges in generating positive operating profits and pre-tax income.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -22.10% | -21.32% | -14.73% | -8.16% |
| Return on assets (ROA) | 5.07% | -21.67% | -13.27% | -3.28% |
| Return on total capital | -32.35% | -32.78% | -20.01% | -9.76% |
| Return on equity (ROE) | 7.42% | -33.31% | -18.02% | -3.92% |
Schrodinger Inc's profitability ratios indicate fluctuations over the past five years. The Operating return on assets (Operating ROA) has shown a slightly improving trend between 2020 and 2023, with a notable decrease in 2020 followed by negative figures in subsequent years. This suggests that the company's operating income generated from its assets has been declining, albeit with a recent improvement.
The Return on assets (ROA) has also been volatile, with negative values recorded in 2020 and 2022, indicating that the company was experiencing losses or inefficiencies in asset utilization during those periods. However, there was a substantial positive improvement in 2023, reflecting a positive net income generated relative to the total assets.
Return on total capital has been consistently negative, reaching its lowest point in 2020 and showing only a slight improvement in recent years. This ratio indicates that the company's overall profitability in relation to its total invested capital has been poor, implying inefficiencies in capital deployment.
On the other hand, Return on equity (ROE) has displayed a similar pattern to ROA, with negative values in 2020 and 2022. Nonetheless, there has been an upward trend since then, reflecting an improvement in the company's ability to generate profit from shareholders' equity.
In summary, Schrodinger Inc's profitability ratios suggest a mixed performance over the past five years, with recent improvements in ROA and ROE indicating potential positive developments in the company's financial performance. However, the negative values of Operating ROA and Return on total capital highlight areas that require further attention and strategic improvements to enhance overall profitability.