Schrodinger Inc (SDGR)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	548,558	563,581	611,225	590,260	447,894	463,110	493,058	530,667	557,071	579,806	605,751	631,768	624,015	630,878	296,120	295,517
ROE		7.42%	7.84%	10.86%	2.44%	-33.31%	-32.97%	-29.99%	-25.40%	-18.02%	-13.94%	-6.93%	-1.69%	-3.92%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $40,720K ÷ $548,558K
= 7.42%

The return on equity (ROE) for Schrodinger Inc has shown a fluctuating trend over the past eight quarters. In Q4 2023 and Q3 2023, the ROE stood at 7.42% and 7.84%, respectively, indicating a moderate level of profitability generated from shareholder equity. However, there was a notable increase in Q2 2023 with ROE reaching 10.86%, suggesting a more efficient utilization of equity to generate profits.

Prior to that, in Q1 2023, the ROE dropped significantly to 2.44%, indicating a lower level of profitability relative to the equity investment. The ROE was negative in the previous quarters, reaching its lowest point in Q4 2022 with -33.31%, gradually improving but still negative in Q3 2022, Q2 2022, and Q1 2022.

This erratic performance in ROE over the quarters may indicate fluctuations in the company's profitability, efficiency, and financial leverage. It is essential for stakeholders to closely monitor and analyze the factors influencing these changes in ROE to ensure sustained and improved financial performance in the future.