Schrodinger Inc (SDGR)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	-187,123	40,720	-149,189	-101,219	-26,637
Total assets	US$ in thousands	823,226	802,955	688,587	756,487	746,263
ROA		-22.73%	5.07%	-21.67%	-13.38%	-3.57%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $-187,123K ÷ $823,226K
= -22.73%

The return on assets (ROA) for Schrodinger Inc exhibited significant fluctuations over the five-year period from December 31, 2020, to December 31, 2024.

- As of December 31, 2020, the ROA was -3.57%, indicating that the company generated a negative return on its assets, which could be attributed to lower profitability relative to its asset base.

- The ROA worsened further by December 31, 2021, dropping to -13.38%, suggesting a deeper decline in profitability compared to the previous year.

- By December 31, 2022, the ROA deteriorated even more significantly to -21.67%, indicating a substantial decrease in the efficiency of the company's asset utilization in generating profits.

- However, a notable turnaround occurred by December 31, 2023, with the ROA improving to 5.07%, signaling that the company effectively utilized its assets to generate positive returns, possibly due to improved operational performance or strategic initiatives.

- Nevertheless, this positive trend was short-lived as by December 31, 2024, the ROA dropped sharply to -22.73%, indicating a significant decline in profitability compared to the previous year.

Overall, the fluctuating ROA trend suggests that Schrodinger Inc experienced challenges in effectively converting its assets into profits, with periods of both improvement and worsening performance. Further analysis of the company's financial and operational aspects would be necessary to understand the underlying factors driving these fluctuations and to formulate appropriate strategies for enhancing ROA in the future.