Schrodinger Inc (SDGR)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -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 |
| Interest expense (ttm) | US$ in thousands | 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 |
| 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 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-177,448K ÷ $185,996K
= -0.95
The interest coverage ratio measures a company's ability to meet its interest obligations from its operating income. A negative interest coverage ratio, as observed for Schrodinger Inc in the last four quarters, indicates that the company's operating income is insufficient to cover its interest expenses. The trend of declining negative values from Q1 2022 to Q3 2023 suggests a worsening ability of the company to meet its interest payments over time. This may raise concerns about the company's financial health and its ability to manage its debt obligations. Investors and creditors should closely monitor this metric to assess the company's risk of defaulting on its debt.
Peer comparison
Dec 31, 2023