Schrodinger Inc (SDGR)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Operating income | US$ in thousands | -177,448 | -146,817 | -111,443 | -60,916 |
| Total assets | US$ in thousands | 802,955 | 688,587 | 756,487 | 746,263 |
| Operating ROA | -22.10% | -21.32% | -14.73% | -8.16% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-177,448K ÷ $802,955K
= -22.10%
The operating return on assets (operating ROA) for Schrodinger Inc has displayed a trend of fluctuation over the past five years. The operating ROA was at its lowest in 2019 at -24.93% before improving in 2020 to -8.16%. However, there was a significant deterioration in 2021 when the operating ROA decreased to -14.73%. This trend continued with a further decline in 2022 to -21.32% and a slight decrease to -22.10% in 2023.
The negative values indicate that Schrodinger Inc's operating income generated from its assets has not been sufficient to cover its operating expenses over the five-year period under consideration. This could be attributed to various factors such as inefficiencies in operations, high operating expenses relative to revenue, or underutilization of assets.
It is essential for Schrodinger Inc to analyze the root causes of this downward trend in operating ROA and implement strategies to improve operational efficiency and profitability in order to generate better returns from its assets in the future.
Peer comparison
Dec 31, 2023