Schrodinger Inc (SDGR)

Return on assets (ROA)

		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	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Net income (ttm)	US$ in thousands	40,720	44,183	66,354	14,390	-149,186	-152,692	-147,846	-134,804	-100,393	-80,819	-41,960	-10,666	-24,463
Total assets	US$ in thousands	802,955	794,148	841,566	838,773	688,587	661,985	687,880	719,537	756,487	762,617	717,334	744,189	746,263	680,116	349,551	349,872
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%

December 31, 2023 calculation

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

Based on the data provided for Schrodinger Inc's return on assets (ROA), the company's performance has been quite volatile over the past eight quarters.

The ROA has fluctuated significantly, with values ranging from a low of -23.07% in Q3 2022 to a high of 7.88% in Q2 2023. This indicates a lack of consistency in the company's ability to generate profits relative to its assets.

The negative ROA values in Q4 2022 and Q3 2022 suggest that during these periods, the company's assets were not effectively utilized to generate earnings, which may raise concerns about operational efficiency and profitability.

The positive ROA values in Q2 2023 and Q3 2023 show an improvement in the company's ability to generate profits from its assets. However, the fluctuation in ROA over the quarters indicates a degree of uncertainty or potential instability in the company's financial performance.

It would be important for stakeholders and investors to monitor Schrodinger Inc's ROA closely and analyze the underlying factors driving the changes to assess the company's financial health and sustainability.