Schrodinger Inc (SDGR)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 42,919 | -149,123 | -99,982 | -24,118 |
| Revenue | US$ in thousands | 216,666 | 180,955 | 137,931 | 108,095 |
| Pretax margin | 19.81% | -82.41% | -72.49% | -22.31% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $42,919K ÷ $216,666K
= 19.81%
The pretax margin of Schrodinger Inc has shown significant fluctuations over the past five years. In 2023, the pretax margin improved to 19.81%, indicating that the company generated $0.1981 in pretax profit for every dollar of revenue. This represents a substantial recovery from the negative pretax margins observed in the two preceding years, where the company incurred losses before taxes.
The negative pretax margins in 2022 and 2021 (-82.41% and -73.09% respectively) suggest that the company faced challenges in controlling costs and generating sustainable profits during those periods. However, the pretax margin in 2023 reflects a notable turnaround in the company's profitability, signaling improved operational efficiency or higher revenue generation.
In 2020 and 2019, the pretax margins were also negative, although less severe compared to 2021 and 2022. These negative margins indicate that the company's expenses exceeded its operating income before taxes during those years.
Overall, the significant improvement in Schrodinger Inc's pretax margin in 2023 is a positive indicator of the company's ability to enhance profitability and potentially strengthen its financial performance in the future. However, further analysis of the factors influencing these fluctuations is necessary to gain a more comprehensive understanding of the company's financial health.
Peer comparison
Dec 31, 2023