Schrodinger Inc (SDGR)
Profitability ratios
Return on sales
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 64.93% | 61.11% | 59.55% | 60.25% | 55.83% | 52.08% | 50.62% | 50.13% | 47.57% | 46.68% | 51.69% | 56.13% | 58.72% |
| Operating profit margin | -81.90% | -88.46% | -85.83% | -75.44% | -81.13% | -82.68% | -79.25% | -75.21% | -80.80% | -84.55% | -71.46% | -64.03% | -56.35% |
| Pretax margin | 19.81% | 23.62% | 37.33% | 20.72% | -82.41% | -89.39% | -90.45% | -87.07% | -72.49% | -64.47% | -34.48% | -9.06% | -22.31% |
| Net profit margin | 18.79% | 22.16% | 34.24% | 7.30% | -82.44% | -89.67% | -90.62% | -87.27% | -72.78% | -64.76% | -34.75% | -9.35% | -22.63% |
Schrodinger Inc's profitability ratios show fluctuations over the past eight quarters. The gross profit margin has been rising steadily, reaching 64.93% in Q4 2023 from 50.13% in Q1 2022, indicating efficient cost management and pricing strategies.
However, the operating profit margin has been consistently negative, with Q4 2023 at -81.90%. This suggests high operating expenses relative to revenue, posing challenges in generating profits from core business activities.
On a positive note, the pretax margin has shown improvement, with Q2 2023 reaching 37.33%, reflecting effective non-operating income or cost-cutting measures. It indicates the company's ability to generate profits before accounting for taxes.
The net profit margin has also shown significant improvement, moving from negative values to positive figures, reaching 18.79% in Q4 2023. This indicates better bottom-line profitability after accounting for all expenses, including taxes.
Overall, while Schrodinger Inc has successfully improved its gross and net profit margins, the negative operating profit margin indicates a need for cost control measures to enhance overall profitability in the future.
Return on investment
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -22.10% | -22.21% | -19.76% | -17.73% | -21.32% | -21.27% | -18.80% | -16.15% | -14.73% | -13.84% | -12.03% | -9.81% | -8.16% |
| Return on assets (ROA) | 5.07% | 5.56% | 7.88% | 1.72% | -21.67% | -23.07% | -21.49% | -18.73% | -13.27% | -10.60% | -5.85% | -1.43% | -3.28% |
| Return on total capital | -32.35% | -31.29% | -27.21% | -25.19% | -32.78% | -30.40% | -26.23% | -21.89% | -20.01% | -18.20% | -14.24% | -11.56% | -9.76% |
| Return on equity (ROE) | 7.42% | 7.84% | 10.86% | 2.44% | -33.31% | -32.97% | -29.99% | -25.40% | -18.02% | -13.94% | -6.93% | -1.69% | -3.92% |
Based on the provided data, Schrodinger Inc's profitability ratios exhibit fluctuating performance over the quarters.
1. Operating return on assets (Operating ROA) has shown a negative trend, indicating that the company is not efficiently utilizing its assets to generate operating income. This could signal operational inefficiencies or high operating expenses.
2. Return on assets (ROA) has been inconsistent, with a mix of positive and negative values. While the company is generating returns from its total assets, the fluctuations suggest varying levels of profitability efficiency over the quarters.
3. Return on total capital has consistently been negative, indicating that the company is not generating sufficient returns to cover its total capital, which includes both debt and equity. This could imply ineffective capital allocation or challenges in generating profits relative to the invested capital.
4. Return on equity (ROE) also displays volatility, with positive and negative values recorded across quarters. The positive values indicate that the company is generating returns for its shareholders, but the fluctuations suggest instability in profitability and efficiency in leveraging equity.
In summary, Schrodinger Inc's profitability ratios indicate mixed performance, with signs of operational inefficiencies, capital allocation challenges, and varying levels of profitability over the quarters. Further analysis and investigation into the company's operations and financial strategies may be necessary to understand the underlying factors contributing to these fluctuations.