Schrodinger Inc (SDGR)
Interest coverage
| 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 |
| Interest expense | US$ in thousands | — | — | 3 | 22,820 | 65,061 |
| Interest coverage | — | — | -48,939.00 | -4.88 | -0.94 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $—K ÷ $—K
= —
The interest coverage ratio of Schrodinger Inc has shown a concerning trend over the years. The ratio was negative in December 31, 2020 at -0.94, indicating that the company's operating income was insufficient to cover its interest expenses. This negative trend worsened in December 31, 2021 to -4.88, further highlighting the company's inability to meet its interest obligations from its operating earnings.
The situation escalated dramatically in December 31, 2022, where the interest coverage ratio plummeted to an alarming -48,939. This extreme level of negative interest coverage raises significant red flags regarding the company's financial health and ability to service its debt. Moreover, the absence of data for December 31, 2023 and 2024 makes it difficult to gauge any potential improvements in the company's interest coverage in the future.
Overall, the persistent decline in Schrodinger Inc's interest coverage ratio signals a severe financial strain, suggesting a heightened risk of default on its debt obligations. Investors and stakeholders should closely monitor the company's actions to address this critical issue to ensure its long-term sustainability and financial viability.
Peer comparison
Dec 31, 2024