Schrodinger Inc (SDGR)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -177,448 | -146,817 | -111,443 | -60,916 |
| Long-term debt | US$ in thousands | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 548,558 | 447,894 | 557,071 | 624,015 |
| Return on total capital | -32.35% | -32.78% | -20.01% | -9.76% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-177,448K ÷ ($—K + $548,558K)
= -32.35%
The return on total capital for Schrodinger Inc has exhibited a declining trend over the past five years, with negative values each year. The company's return on total capital was -32.35% in 2023, slightly improving from -32.78% in 2022 but still significantly lower compared to the -20.01% in 2021, -9.76% in 2020, and the lowest at -39.42% in 2019.
These negative returns indicate that Schrodinger Inc is not efficiently utilizing its total capital to generate profits, as the percentage of return is below zero. This trend raises concerns about the company's ability to generate adequate returns for its capital providers and suggests potential inefficiencies or challenges within the company's operations or financial management. Further investigation into the company's financial performance, operations, and strategic initiatives may be warranted to address the persistent decline in return on total capital.
Peer comparison
Dec 31, 2023