Schrodinger Inc (SDGR)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	40,720	-149,186	-100,393	-24,463
Total assets	US$ in thousands	802,955	688,587	756,487	746,263
ROA		5.07%	-21.67%	-13.27%	-3.28%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $40,720K ÷ $802,955K
= 5.07%

Schrodinger Inc's return on assets (ROA) has shown significant variations over the past five years. In 2023, the ROA stood at 5.07%, indicating that the company generated 5.07 cents of profit for every dollar of assets it holds. This represents a positive performance compared to the previous years.

In 2022, the ROA was -21.67%, reflecting a loss on assets, which may raise concerns about the company's efficiency in generating profits from its assets. The ROA improved in 2021 to -13.27%, but remained negative, suggesting that the company was still not effectively utilizing its assets to generate profit.

The ROA in 2020 was -3.28%, indicating a slight improvement from the previous year but still falling below the positive threshold. The lowest ROA was observed in 2019 at -15.82%, signaling a significant decline in asset efficiency.

Overall, Schrodinger Inc's ROA has shown fluctuations, with negative values predominating in the earlier years and a positive turnaround in the most recent year. Further analysis of the company's asset management and profitability strategies is warranted to understand the factors driving these fluctuations in ROA.