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Schrodinger (Schrodinger) Operating Income : $-177.4 Mil (TTM As of Dec. 2023)


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What is Schrodinger Operating Income?

Schrodinger's Operating Income for the three months ended in Dec. 2023 was $-29.6 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 was $-177.4 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Schrodinger's Operating Income for the three months ended in Dec. 2023 was $-29.6 Mil. Schrodinger's Revenue for the three months ended in Dec. 2023 was $74.1 Mil. Therefore, Schrodinger's Operating Margin % for the quarter that ended in Dec. 2023 was -39.96%.

Warning Sign:

Schrodinger Inc operating margin has been in a 5-year decline. The average rate of decline per year is -16.9%.

Schrodinger's 5-Year average Growth Rate for Operating Margin % was -16.90% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Schrodinger's annualized ROC % for the quarter that ended in Dec. 2023 was -37.55%. Schrodinger's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was -83.61%.


Schrodinger Operating Income Historical Data

The historical data trend for Schrodinger's Operating Income 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.

* Premium members only.

Schrodinger Operating Income Chart

Schrodinger Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Operating Income
Get a 7-Day Free Trial -38.72 -60.92 -111.44 -146.82 -177.45

Schrodinger Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Operating Income 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 -28.54 -30.50 -61.13 -56.19 -29.62

Schrodinger Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $-177.4 Mil.

* 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.


Schrodinger  (NAS:SDGR) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Schrodinger's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

ROC % (Q: Dec. 2023 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Sep. 2023 ) + Invested Capital (Q: Dec. 2023 ))/ count )
=-118.484 * ( 1 - 2.67% )/( (305.979 + 308.258)/ 2 )
=-115.3204772/307.1185
=-37.55 %

where

Invested Capital(Q: Sep. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=794.148 - 45.446 - ( 496.283 - max(0, 105.038 - 547.761+496.283))
=305.979

Invested Capital(Q: Dec. 2023 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=802.955 - 60.574 - ( 463.003 - max(0, 133.673 - 567.796+463.003))
=308.258

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

Schrodinger's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

ROC (Joel Greenblatt) %(Q: Dec. 2023 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Sep. 2023  Q: Dec. 2023
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=-118.484/( ( (142.32 + max(-49.534, 0)) + (141.103 + max(-35.136, 0)) )/ 2 )
=-118.484/( ( 142.32 + 141.103 )/ 2 )
=-118.484/141.7115
=-83.61 %

where Working Capital is:

Working Capital(Q: Sep. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(19.884 + 0 + 19.341) - (45.446 + 43.313 + 0)
=-49.534

Working Capital(Q: Dec. 2023 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(65.992 + 0 + 15.677) - (60.574 + 56.231 + 0)
=-35.136

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Schrodinger's Operating Margin % for the quarter that ended in Dec. 2023 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2023 )/Revenue (Q: Dec. 2023 )
=-29.621/74.126
=-39.96 %

* 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.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Schrodinger Operating Income Related Terms

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Schrodinger (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
Kenneth Patrick Lorton 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
Yvonne Tran officer: See Remarks SCHRODINGER, INC., 120 WEST 45TH STREET, 17TH FLOOR, NEW YORK NY 10036
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
Geoffrey Craig Porges officer: EVP & CFO 1540 BROADWAY, 24TH FL., NEW YORK NY 10036
Arun Oberoi director 100 EAST DAVIE STREET, RALEIGH NC 27601
Robert Lorne Abel officer: See Remarks SCHRODINGER, INC., 120 WEST 45TH STREET, 17TH FLOOR, NEW YORK NY 10036
Karen Akinsanya officer: See Remarks SCHRODINGER, INC., 120 WEST 45TH STREET, 17TH FLOOR, NEW YORK NY 10036
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
Richard Friesner director, 10 percent owner SCHRODINGER, INC., 120 WEST 45TH STREET, 17TH FLOOR, NEW YORK NY 10036