Schrodinger Inc (SDGR)
Solvency ratios
| 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 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.46 | 1.41 | 1.38 | 1.42 | 1.54 | 1.43 | 1.40 | 1.36 | 1.36 | 1.32 | 1.18 | 1.18 | 1.20 | 1.08 | 1.18 | 1.18 |
Schrodinger Inc's solvency ratios, as depicted by the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio, consistently indicate a ratio of 0.00 across all quarters in the provided data. This suggests that the company has not utilized debt to finance its assets, capital, or operations during the specified periods.
However, when examining the financial leverage ratio, which provides insight into the proportion of debt in the company's capital structure relative to equity, there is some variability. The financial leverage ratio fluctuated between 1.36 and 1.54 over the past eight quarters.
A financial leverage ratio above 1 signifies that the company relies more on debt financing, while a ratio below 1 indicates a higher reliance on equity financing. In Schrodinger Inc's case, the ratios above 1 indicate some level of leverage in the capital structure, with the variability reflecting potential shifts in the company's debt and equity composition over time.
Overall, the consistently low debt-to-assets, debt-to-capital, and debt-to-equity ratios suggest that Schrodinger Inc has maintained a conservative approach to debt management and has not heavily leveraged its capital structure with debt financing.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Given the data provided, it appears that Schrodinger Inc's interest coverage ratio for the Q1 2023, Q2 2023, and Q3 2023 quarters were -453.28, -507.12, and -537.70, respectively. A negative interest coverage ratio indicates that the company's earnings before interest and taxes (EBIT) were insufficient to cover its interest expense during these periods. This raises concerns about the company's ability to meet its interest obligations with its current level of operating profits.
Unfortunately, the data for Q4 2023 and the corresponding quarters in 2022 is not available, making it difficult to provide a complete trend analysis. It is important for investors and stakeholders to monitor the interest coverage ratio over time to assess the company's financial health and its ability to service its debt obligations. The negative trend observed in the recent quarters highlights the need for Schrodinger Inc to focus on improving its operational efficiency and profitability to enhance its ability to cover its interest expenses in the future.