Ironwood Pharmaceuticals Inc (IRWD)

Receivables 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
Receivables	US$ in thousands	129,122	124,546	118,990	115,749	115,458	116,545	102,357	105,515	114,042	101,773	102,252	87,152	122,351	113,250	105,379	91,107	117,246	96,570	103,786	72,617
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

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $429,548K ÷ $129,122K
= 3.33

The receivables turnover for Ironwood Pharmaceuticals Inc has shown a fluctuating trend over the past eight quarters. The turnover ratio has ranged between 3.43 and 4.06 during this period. In the most recent quarter, Q4 2023, the receivables turnover was 3.43, representing a slight decrease from the previous quarter.

Overall, the company's ability to collect its accounts receivable has been relatively consistent, with an average turnover ratio of around 3.70 over the last two years. A higher turnover ratio indicates that the company is collecting its receivables more quickly, which is generally viewed as a positive sign of operational efficiency.

However, it is worth noting that the receivables turnover ratio has been trending downwards over the past few quarters, reaching its lowest point in Q4 2023. This could potentially indicate that the company is taking longer to collect its receivables, which may require further investigation into the company's credit policies and collection procedures.