Schrodinger Inc (SDGR)

Interest coverage

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
Interest expense (ttm) US$ in thousands 0 0 0 0 185,996 186,324 198,101 217,981 32,313 31,991 20,500 977 1,069 1,584 1,761 1,974 2,253 2,147 1,684 1,114
Interest coverage — — — — -0.95 -0.95 -0.84 -0.68 -4.54 -4.40 -6.31 -118.91 -104.25 -66.61 -49.00 -36.99 -27.04 -24.30 -28.52 -40.31

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-209,296K ÷ $0K
= —

The interest coverage ratio of Schrodinger Inc has shown a significant improvement over the past few years. At the beginning of the observation period in March 2020, the interest coverage ratio was deeply negative at -40.31, indicating that the company had insufficient earnings to cover its interest expenses.

However, over the next few quarters, there was a gradual improvement in the interest coverage ratio, with the ratio becoming less negative by June 2022. By March 2023, the company had achieved a near breakeven position with an interest coverage ratio of -0.68. This indicated that the company was starting to generate enough earnings to cover its interest expenses.

Subsequently, the interest coverage ratio remained stable around the breakeven point for the following quarters, which signified a positive trend in the company's financial health. It is worth noting that for the last few periods, no specific ratio values were provided, which might indicate improved performance in terms of interest coverage.

Overall, the trend in Schrodinger Inc's interest coverage ratio reflects a positive trajectory, showcasing the company's ability to meet its interest obligations with its operating earnings.