Ironwood Pharmaceuticals Inc (IRWD)

Payables 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
Cost of revenue (ttm)	US$ in thousands	158,953	148,037	140,610	118,250	115,994	117,408	116,458	113,104	112,206	131,431	139,922	147,795	158,521	159,663	164,762	185,168	215,591	397,666	579,506	602,753
Payables	US$ in thousands	7,830	4,698	3,505	118	483	795	317	532	935	414	466	842	661	1,972	2,104	2,781	3,978	4,505	7,872	11,203
Payables turnover		20.30	31.51	40.12	1,002.12	240.15	147.68	367.38	212.60	120.01	317.47	300.26	175.53	239.82	80.97	78.31	66.58	54.20	88.27	73.62	53.80

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $158,953K ÷ $7,830K
= 20.30

Ironwood Pharmaceuticals Inc has consistently reported a payables turnover ratio of 0.00 for each quarter in the provided data. This indicates that the company is not effectively managing its accounts payable during these periods. A payables turnover ratio of 0.00 suggests that the company is not paying its suppliers or vendors frequently enough, potentially leading to strained supplier relations or missed opportunities for early payment discounts. This stagnant ratio could be a red flag for potential inefficiencies in the company's payables management process, and warrants further investigation into the company's working capital management practices.