Schrodinger Inc (SDGR)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -209,296 | -177,448 | -149,123 | -111,443 | -60,916 |
| Total assets | US$ in thousands | 823,226 | 802,955 | 688,587 | 756,487 | 746,263 |
| Operating ROA | -25.42% | -22.10% | -21.66% | -14.73% | -8.16% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $-209,296K ÷ $823,226K
= -25.42%
Based on the data provided, Schrodinger Inc's operating return on assets (operating ROA) has been on a downward trend over the past five years. The operating ROA was -8.16% as of December 31, 2020, and deteriorated to -25.42% by December 31, 2024. This indicates that the company's operating income generated from its assets has been decreasing relative to the size of its asset base.
A negative operating ROA implies that the company's operating income is insufficient to cover the cost of its assets. A declining trend in operating ROA could signal operational inefficiencies, lower profitability, or challenges in effectively utilizing the company's assets to generate revenue.
Schrodinger Inc may need to reassess its operational strategies, cost structures, and asset management practices to improve its operating ROA and enhance overall profitability in the future. Additionally, stakeholders should closely monitor the company's performance and financial health to ensure sustainable operations and value creation.
Peer comparison
Dec 31, 2024