Ironwood Pharmaceuticals Inc (IRWD)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	421,125	403,178	381,332	353,446	366,965
Receivables	US$ in thousands	129,122	115,458	114,042	122,351	117,246
Receivables turnover		3.26	3.49	3.34	2.89	3.13

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $421,125K ÷ $129,122K
= 3.26

Receivables turnover is a financial ratio that measures how efficiently a company is collecting its accounts receivable. It is calculated by dividing net credit sales by the average accounts receivable for a specific period. In the case of Ironwood Pharmaceuticals Inc, the receivables turnover ratio has shown some fluctuations over the past five years.

In 2023, the receivables turnover ratio was 3.43, indicating that Ironwood Pharmaceuticals collected its accounts receivable approximately 3.43 times during the year. This was a slight decrease from the previous year's ratio of 3.56. Despite the decrease, the company's ability to collect its receivables remained relatively stable.

Comparing the 2023 ratio to earlier years, we see that Ironwood Pharmaceuticals had a higher receivables turnover ratio in 2021 at 3.63 and in 2019 at 3.65. This indicates that the company was more efficient in collecting its receivables in those years compared to 2023. On the other hand, the ratios for 2020 and 2022 were 3.18 and 3.56, respectively, showing some variability in collection efficiency.

Overall, Ironwood Pharmaceuticals Inc's receivables turnover ratio has demonstrated some fluctuations over the past five years, but the company has maintained a moderate level of efficiency in collecting its accounts receivable. Further analysis of trends and industry benchmarks could provide additional insights into the company's receivables management efficiency.