Schrodinger Inc (SDGR)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.95 | 1.46 | 1.54 | 1.36 | 1.20 |
Schrodinger Inc's solvency ratios indicate a strong financial position with consistently low debt levels compared to its assets, capital, and equity. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio are all at 0.00 for the years 2020 to 2024, reflecting the company's minimal reliance on debt to finance its operations.
However, the Financial leverage ratio has increased over the years, from 1.20 in 2020 to 1.95 in 2024. While the ratio is still relatively low, this upward trend suggests that the company's reliance on external financing has grown, which may increase financial risk in the long run.
Overall, Schrodinger Inc's solvency ratios demonstrate a robust financial position with virtually no debt burden, but the increasing Financial leverage ratio warrants monitoring to ensure sustainable financial health in the future.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | — | -48,939.00 | -4.88 | -0.94 |
The interest coverage ratio measures a company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT). A higher ratio indicates a stronger ability to meet interest obligations.
For Schrodinger Inc, the interest coverage ratios paint a concerning picture. The ratio was negative in all reported years, indicating that the company's earnings were not sufficient to cover its interest expenses.
In December 31, 2020, the interest coverage ratio was -0.94, worsening to -4.88 in December 31, 2021. The situation deteriorated significantly in December 31, 2022, with an interest coverage ratio of -48,939. This extremely low ratio suggests severe financial distress.
Moreover, the absence of reported values for December 31, 2023, and December 31, 2024, may indicate potential uncertainties or challenges in the company's financial reporting.
Overall, the consistently negative interest coverage ratios for Schrodinger Inc raise concerns about its ability to meet its interest obligations using its operating profits. Investors and creditors may view this as a red flag regarding the company's financial health and leverage situation. Further investigation into the company's financial management and debt structure would be warranted.