Ironwood Pharmaceuticals Inc (IRWD)

Total asset 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
Total assets	US$ in thousands	471,073	1,100,520	1,126,930	559,238	402,748
Total asset turnover		0.89	0.37	0.34	0.63	0.91

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $421,125K ÷ $471,073K
= 0.89

Total asset turnover is a measure of a company's efficiency in generating revenue from its assets. In the case of Ironwood Pharmaceuticals Inc, the total asset turnover has fluctuated over the past five years. The ratio was 0.94 in 2023, indicating that the company generated $0.94 of revenue for every dollar of assets. This represents an improvement from the previous year, where the ratio was 0.37.

In 2022 and 2021, the total asset turnover ratio remained consistent at 0.37, suggesting that the company was not as effective in utilizing its assets to generate revenue during those years. However, there was a significant improvement in 2020, with the ratio increasing to 0.70, and further improvement in 2019, with a ratio of 1.06, indicating that the company was more efficient in generating revenue from its assets during those years.

Overall, the trend of total asset turnover for Ironwood Pharmaceuticals Inc has been mixed, with fluctuations in the ratio over the past five years. It is important for the company to continue monitoring and improving its efficiency in utilizing its assets to generate revenue in order to enhance its overall financial performance.