Schrodinger Inc (SDGR)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	140,692	101,022	65,620	63,472
Revenue	US$ in thousands	216,666	180,955	137,931	108,095
Gross profit margin		64.93%	55.83%	47.57%	58.72%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $140,692K ÷ $216,666K
= 64.93%

Schrodinger Inc's gross profit margin has shown fluctuations over the past five years. The margin stood at 64.93% in 2023, representing a significant improvement from the previous year's 55.83%. However, compared to 2021 and 2019 when it was 47.57% and 57.39% respectively, the current margin is notably higher. This upward trend indicates that the company has managed to increase its efficiency in generating profit from its core operations in 2023. Overall, a rising gross profit margin is a positive indicator of the company's ability to control production costs and pricing strategies effectively, thereby enhancing its profitability.