Schrodinger Inc (SDGR)

Financial leverage ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total assets	US$ in thousands	823,226	802,955	688,587	756,487	746,263
Total stockholders’ equity	US$ in thousands	421,445	548,558	447,894	557,071	624,015
Financial leverage ratio		1.95	1.46	1.54	1.36	1.20

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $823,226K ÷ $421,445K
= 1.95

The financial leverage ratio of Schrodinger Inc has shown a fluctuating trend over the past five years. It increased from 1.20 in December 31, 2020, to 1.36 in December 31, 2021, indicating a rise in the company's reliance on debt to finance its operations and growth. Subsequently, the ratio continued to climb to 1.54 by December 31, 2022, suggesting a further increase in financial leverage.

However, there was a slight decrease in the financial leverage ratio to 1.46 by December 31, 2023. This could be interpreted as a potential adjustment in the company's capital structure or a reduction in debt levels relative to its equity.

Notably, the ratio experienced a significant spike to 1.95 by December 31, 2024, reaching its highest point in the period under review. This sharp increase may raise concerns about the company's risk exposure, as a higher financial leverage ratio implies a greater proportion of debt in the capital structure.

Overall, Schrodinger Inc's financial leverage ratio has exhibited variability, with both upward and downward movements, highlighting the importance of monitoring the company's debt levels and capital structure in relation to its financial stability and risk management.