Ironwood Pharmaceuticals Inc (IRWD)
Activity ratios
Short-term
Turnover 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 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | 187.86 | 178.44 | 94.60 | 92.80 | — | — | — | — | — | — | — | — | — | — | — | 332.70 | 173.05 | 334.01 | 1,016.45 |
| Receivables turnover | 3.33 | 3.37 | 3.55 | 3.55 | 3.51 | 3.56 | 3.96 | 3.83 | 3.44 | 3.85 | 3.79 | 4.31 | 2.95 | 3.28 | 3.48 | 4.15 | 3.16 | 3.89 | 3.33 | 4.46 |
| 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 |
| Working capital turnover | — | — | 34.61 | 0.49 | 0.54 | 0.62 | 0.68 | 0.72 | 0.67 | 0.71 | 0.80 | 0.73 | 0.78 | 0.93 | 1.06 | 1.23 | 1.40 | 1.83 | 3.14 | 3.89 |
Inventory turnover for Ironwood Pharmaceuticals Inc is not available in the provided data, indicating that the company may either have minimal inventory levels or the data is not reported.
The receivables turnover ratio for Ironwood Pharmaceuticals Inc has been relatively consistent over the past eight quarters, averaging around 3.5. This indicates that on average, the company collects its accounts receivable approximately 3.5 times a year. A stable and consistent receivables turnover ratio suggests effective management of credit policies and efficient collection practices.
The payables turnover ratio for Ironwood Pharmaceuticals Inc is consistently reported as 0.00 across all quarters, which may indicate that the company pays its suppliers promptly or the company has minimal payables turnover. However, further analysis or additional information is needed to fully understand the implications of this ratio.
The working capital turnover ratio for Ironwood Pharmaceuticals Inc has shown some fluctuation over the quarters, ranging from 0.50 to 0.75. A higher working capital turnover ratio indicates that the company is generating more revenue per dollar of working capital employed, which is generally favorable. However, the fluctuations suggest that the company's efficiency in utilizing working capital may vary over time and could warrant further investigation into the underlying reasons for these fluctuations.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 1.94 | 2.05 | 3.86 | 3.93 | — | — | — | — | — | — | — | — | — | — | — | 1.10 | 2.11 | 1.09 | 0.36 |
| Days of sales outstanding (DSO) | days | 109.72 | 108.44 | 102.78 | 102.70 | 104.13 | 102.59 | 92.14 | 95.27 | 106.21 | 94.89 | 96.40 | 84.68 | 123.60 | 111.44 | 104.82 | 88.04 | 115.36 | 93.90 | 109.71 | 81.86 |
| Number of days of payables | days | 17.98 | 11.58 | 9.10 | 0.36 | 1.52 | 2.47 | 0.99 | 1.72 | 3.04 | 1.15 | 1.22 | 2.08 | 1.52 | 4.51 | 4.66 | 5.48 | 6.73 | 4.13 | 4.96 | 6.78 |
The Days of Sales Outstanding (DSO) for Ironwood Pharmaceuticals Inc show a consistent trend of around 100 to 106 days over the past eight quarters, indicating that the company takes an average of 100 to 106 days to collect payments from its customers. This suggests that the company may have relatively lenient credit terms or may be experiencing challenges in collecting payments promptly.
The Days of Inventory on Hand (DOH) data is not available for analysis, which limits our ability to assess how efficiently Ironwood Pharmaceuticals manages its inventory levels. Without this data, it is difficult to evaluate the company's inventory turnover and potential implications for its operational efficiency.
Additionally, the Number of Days of Payables data is also not provided, making it impossible to gauge how long Ironwood Pharmaceuticals takes to pay its suppliers. This information is crucial for assessing the company's liquidity management and vendor relationships.
In conclusion, while the Days of Sales Outstanding (DSO) paints a picture of the company's receivables management, the lack of data on Days of Inventory on Hand (DOH) and Number of Days of Payables hinders a holistic assessment of Ironwood Pharmaceuticals Inc's activity ratios and operational efficiencies.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Total asset turnover | 0.91 | 0.80 | 0.70 | 0.36 | 0.37 | 0.40 | 0.42 | 0.37 | 0.35 | 0.36 | 0.38 | 0.63 | 0.65 | 0.75 | 0.83 | 0.93 | 0.92 | 1.12 | 1.09 | 0.89 |
Ironwood Pharmaceuticals Inc's long-term activity ratios, namely fixed asset turnover and total asset turnover, provide valuable insights into the company's efficiency in utilizing its assets to generate sales revenue.
The fixed asset turnover ratio has shown an increasing trend over the past eight quarters, indicating that Ironwood Pharmaceuticals has been able to generate more sales revenue relative to its investment in fixed assets such as property, plant, and equipment. This suggests that the company is effectively utilizing its fixed assets to drive sales and improve operational efficiency.
On the other hand, the total asset turnover ratio has fluctuated over the same period, with a slight increase in Q3 2023 followed by a decrease in Q4 2023. This ratio measures the company's ability to generate sales in relation to its total assets, including both fixed and current assets. The fluctuations in this ratio may indicate changing business conditions or varying levels of asset utilization efficiency.
Overall, the improving trend in the fixed asset turnover ratio bodes well for Ironwood Pharmaceuticals' operational efficiency and ability to generate revenue from its fixed assets. However, the fluctuations in the total asset turnover ratio suggest that the company may need to closely monitor its overall asset utilization to ensure sustainable growth and profitability in the long term.