Schrodinger Inc (SDGR)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 421,445 | 548,558 | 447,894 | 557,071 | 624,015 |
| ROE | -44.40% | 7.42% | -33.31% | -18.17% | -4.27% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-187,123K ÷ $421,445K
= -44.40%
Schrodinger Inc's return on equity (ROE) has exhibited fluctuations over the past five years. The company reported a negative ROE of -4.27% as of December 31, 2020, which deteriorated further to -18.17% by December 31, 2021, indicating declining profitability relative to shareholders' equity.
In the subsequent year, the ROE declined significantly to -33.31% as of December 31, 2022, reflecting continued challenges in generating returns for shareholders. However, there was a notable improvement in the company's performance by December 31, 2023, with the ROE turning positive at 7.42%. This positive ROE suggests that Schrodinger Inc was able to generate some profit relative to the shareholders' equity invested.
Unfortunately, the positive momentum was short-lived as the ROE sharply decreased to -44.40% by December 31, 2024, indicating a substantial decline in profitability and efficiency in utilizing shareholder funds. The varying trend in ROE implies fluctuating levels of profitability and operational efficiency within the company over the analyzed period.
Peer comparison
Dec 31, 2024