Ironwood Pharmaceuticals Inc (IRWD)

Fixed asset turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	429,548	419,194	422,558	411,359	404,724	414,655	405,461	404,251	391,925	391,475	387,138	375,652	361,301	370,922	366,956	377,722	370,977	375,368	345,294	323,795
Property, plant and equipment	US$ in thousands	5,585	5,630	5,876	6,015	6,288	6,660	6,964	7,229	7,575	7,912	8,105	8,501	8,929	9,324	11,190	12,164	12,429	11,381	6,665	19,017
Fixed asset turnover		76.91	74.46	71.91	68.39	64.36	62.26	58.22	55.92	51.74	49.48	47.77	44.19	40.46	39.78	32.79	31.05	29.85	32.98	51.81	17.03

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $429,548K ÷ $5,585K
= 76.91

Ironwood Pharmaceuticals Inc has shown consistent improvement in its fixed asset turnover ratio over the past eight quarters. The ratio has increased steadily from 58.44 in Q1 2022 to 79.27 in Q4 2023. This indicates that the company is generating more revenue for each dollar invested in fixed assets.

The rising trend in fixed asset turnover suggests that Ironwood Pharmaceuticals is utilizing its fixed assets more efficiently to generate sales and support its operations. This could be attributed to better asset management practices, operational efficiencies, or increased productivity.

Overall, the increasing fixed asset turnover ratio is a positive indicator of Ironwood Pharmaceuticals' operational performance and ability to generate revenue from its fixed assets. It reflects the company's successful utilization of its resources to drive sales growth and improve profitability over time.