Schrodinger Inc (SDGR)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 548,558 | 447,894 | 557,071 | 624,015 |
| ROE | 7.42% | -33.31% | -18.02% | -3.92% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $40,720K ÷ $548,558K
= 7.42%
Schrodinger Inc's return on equity (ROE) has shown varied performance over the past five years, as per the table provided. In 2023, the ROE improved to 7.42% from negative figures in the previous two years, indicating a positive shift towards profitability. However, it is still below industry averages that could be achieved in a healthy economic environment.
The negative ROE values in 2020, 2019, and 2022 raise concerns about the company's efficiency in generating profits from shareholders' equity. The significant improvement in 2023 suggests that the company may have implemented strategic changes to enhance its profitability and operational efficiency.
Overall, Schrodinger Inc needs to focus on sustained improvements in ROE to demonstrate better returns to its shareholders and enhance its financial performance in the future. Further analysis of the company's operational and financial strategies would provide valuable insights into the factors driving these fluctuations in ROE.
Peer comparison
Dec 31, 2023