Schrodinger Inc (SDGR)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -209,296 | -218,205 | -205,976 | -214,380 | -177,448 | -176,365 | -166,335 | -148,675 | -146,817 | -140,794 | -129,305 | -116,174 | -111,443 | -105,512 | -86,283 | -73,028 | -60,916 | -52,179 | -48,026 | -44,902 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 421,445 | 449,425 | 473,980 | 513,706 | 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 |
| Return on total capital | -49.66% | -48.55% | -43.46% | -41.73% | -32.35% | -31.29% | -27.21% | -25.19% | -32.78% | -30.40% | -26.23% | -21.89% | -20.01% | -18.20% | -14.24% | -11.56% | -9.76% | -8.27% | -16.22% | -15.19% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-209,296K ÷ ($—K + $421,445K)
= -49.66%
The return on total capital for Schrodinger Inc has shown a consistent decline over the last few quarters, indicating a deteriorating performance in utilizing its total capital effectively. The ratio has decreased from -15.19% in March 2020 to -49.66% in December 2024.
This downward trend suggests that the company is struggling to generate sufficient returns from its invested capital, potentially facing challenges in deploying resources efficiently or generating profit from its operations. The declining return on total capital may raise concerns among investors and stakeholders about the company's ability to create value and sustain profitability in the long run.
Schrodinger Inc may need to investigate the factors contributing to the declining return on total capital, such as inefficiencies in operations, underperforming investments, or increased capital costs. Addressing these issues and implementing strategies to improve capital utilization could help the company enhance its financial performance and regain investor confidence.
Peer comparison
Dec 31, 2024