Ironwood Pharmaceuticals Inc (IRWD)

Total asset 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
Total assets	US$ in thousands	471,073	524,063	603,220	1,155,280	1,100,520	1,040,340	975,690	1,083,380	1,126,930	1,079,370	1,007,220	599,344	559,238	492,324	443,538	404,005	402,748	334,343	315,721	363,538
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

December 31, 2023 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $429,548K ÷ $471,073K
= 0.91

Ironwood Pharmaceuticals Inc's total asset turnover ratio has displayed some fluctuation over the past eight quarters. The ratio ranged from a low of 0.36 in Q1 2023 to a high of 0.94 in Q4 2023. This indicates how efficiently the company is utilizing its assets to generate revenue.

A higher total asset turnover ratio signifies that the company is generating more revenue per dollar of assets, indicating stronger asset utilization and efficiency. Conversely, a lower ratio may indicate underutilization or inefficiency in asset management.

The significant increase in total asset turnover from Q1 2023 to Q4 2023 suggests improved asset utilization efficiency during this period. The ratio exceeding 1 would indicate that the company is generating more revenue than the value of its total assets, which would be a favorable sign of operational efficiency.

Overall, monitoring the trend of total asset turnover ratios can provide insights into Ironwood Pharmaceuticals Inc's operational efficiency and effectiveness in utilizing its assets to drive revenue growth.