Schrodinger Inc (SDGR)
Return on total capital
| Dec 31, 2024 | 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 | 421,445 | 548,558 | 447,894 | 557,071 | 624,015 |
| Return on total capital | 0.00% | -32.35% | -32.78% | -20.01% | -9.76% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $421,445K)
= 0.00%
Based on the provided data, Schrodinger Inc's return on total capital has shown a declining trend over the years. The return on total capital was -9.76% as of December 31, 2020, which decreased to -20.01% by December 31, 2021, and further dropped to -32.78% by December 31, 2022. The trend continued with a return of -32.35% as of December 31, 2023. However, there was a notable improvement as of December 31, 2024, with a return of 0.00%.
The negative return on total capital indicates that Schrodinger Inc was not generating sufficient profits to cover its total capital requirements in the earlier years, which may have raised concerns about the company's financial health and operational efficiency.
The sudden improvement in 2024, where the return on total capital reached 0.00%, suggests that the company may have implemented strategic changes or initiatives that helped in stabilizing or turning around its profitability and capital utilization.
It would be crucial for stakeholders and investors to closely monitor Schrodinger Inc's future financial performance to assess whether the positive return observed in 2024 is sustainable and if the company can continue to enhance its return on total capital in the long term.
Peer comparison
Dec 31, 2024