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SDGR (Schrodinger) Degree of Operating Leverage : -0.45 (As of Mar. 2025)


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What is Schrodinger Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Schrodinger's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was -0.45. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Schrodinger's Degree of Operating Leverage or its related term are showing as below:

SDGR's Degree of Operating Leverage is ranked better than
63.69% of 639 companies
in the Healthcare Providers & Services industry
Industry Median: 0.53 vs SDGR: -0.45

Schrodinger Degree of Operating Leverage Historical Data

The historical data trend for Schrodinger's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Schrodinger Degree of Operating Leverage Chart

Schrodinger Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial 2.18 3.01 1.02 1.06 -4.26

Schrodinger Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -10.14 6.76 -7.84 -4.26 -0.45

Competitive Comparison of Schrodinger's Degree of Operating Leverage

For the Health Information Services subindustry, Schrodinger's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Schrodinger's Degree of Operating Leverage Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Schrodinger's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Schrodinger's Degree of Operating Leverage falls into.


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Schrodinger Degree of Operating Leverage Calculation

Schrodinger's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -192.752 (Mar. 2025) / -214.38 (Mar. 2024) - 1 )/( 230.492 (Mar. 2025) / 188.482 (Mar. 2024) - 1 )
=-0.1009/0.2229
=-0.45***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Schrodinger  (NAS:SDGR) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Schrodinger Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Schrodinger's Degree of Operating Leverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Schrodinger Business Description

Traded in Other Exchanges
Address
1540 Broadway, 24th Floor, New York, NY, USA, 10036
Schrodinger Inc is a healthcare-based software company. Its operating segments are Software and Drug discovery. Through the Software segment, the company is focused on selling software to transform drug discovery across the life sciences industry and customers in materials science industries. In the Drug discovery segment, it is engaged in generating revenue from a portfolio of preclinical and clinical programs, internally and through collaborations. It generates revenue from the sales of software solutions and from research funding and milestone payments from its drug discovery collaborations.
Executives
Karen Akinsanya officer: See Remarks SCHRODINGER, INC., 120 WEST 45TH STREET, 17TH FLOOR, NEW YORK NY 10036
Jenny Herman officer: Vice President, Controller SCHRODINGER, INC., 120 WEST 45TH STREET, 17TH FLOOR, NEW YORK NY 10036
Geoffrey Craig Porges officer: EVP & CFO 1540 BROADWAY, 24TH FL., NEW YORK NY 10036
Kenneth Patrick Lorton officer: See Remarks SCHRODINGER, INC., 120 WEST 45TH STREET, 17TH FLOOR, NEW YORK NY 10036
Yvonne Tran officer: See Remarks SCHRODINGER, INC., 120 WEST 45TH STREET, 17TH FLOOR, NEW YORK NY 10036
Robert Lorne Abel officer: See Remarks SCHRODINGER, INC., 120 WEST 45TH STREET, 17TH FLOOR, NEW YORK NY 10036
Margaret Dugan officer: Chief Medical Officer C/O MOURANT GOVERNANCE SERVICES (CAYMAN), 94 SOLARIS AVE, CAMANA BAY, PO BOX 1348, GRAND CAYMAN E9 KY1-1108
Nancy Thornberry director SCHRODINGER, INC., 120 WEST 45TH STREET, 17TH FLOOR, NEW YORK NY 10036
Ramy Farid director, 10 percent owner, officer: See Remarks SCHRODINGER, INC., 120 WEST 45TH STREET, 17TH FLOOR, NEW YORK NY 10036
Arun Oberoi director 100 EAST DAVIE STREET, RALEIGH NC 27601
Joel Lebowitz officer: See Remarks SCHRODINGER, INC., 120 WEST 45TH STREET, 17TH FLOOR, NEW YORK NY 10036
David E Shaw 10 percent owner 120 WEST FORTY-FIFTH STREET, 39TH FLOOR, NEW YORK NY 10036
Jorg Weiser officer: See Remarks SCHRODINGER, INC., 120 WEST 45TH STREET, 17TH FLOOR, NEW YORK NY 10036
Jennifer Daniel officer: See Remarks SCHRODINGER, INC., 120 WEST 45TH STREET, 17TH FLOOR, NEW YORK NY 10036
D'cruz Cony officer: See Remarks SCHRODINGER, INC., 120 WEST 45TH STREET, 17TH FLOOR, NEW YORK NY 10036