Ironwood Pharmaceuticals Inc (IRWD)

Working capital 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 current assets	US$ in thousands	233,288	253,610	317,599	866,374	780,626	698,994	617,826	710,101	745,225	695,374	620,268	538,246	495,839	433,317	374,275	333,943	306,852	257,638	220,985	201,832
Total current liabilities	US$ in thousands	276,101	280,579	305,390	23,843	25,525	27,117	23,298	147,403	161,698	145,694	134,370	23,603	32,173	32,901	26,695	27,595	40,929	52,795	110,861	118,569
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

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $429,548K ÷ ($233,288K – $276,101K)
= —

The working capital turnover of Ironwood Pharmaceuticals Inc has exhibited a fluctuating trend over the past eight quarters, ranging from as low as 0.50 in Q1 2023 to as high as 35.00 in Q2 2023. The working capital turnover measures how efficiently the company is utilizing its working capital to generate sales revenue.

A working capital turnover ratio of 35.00 in Q2 2023 indicates that Ironwood Pharmaceuticals Inc was able to generate $35.00 in sales revenue for every dollar of working capital invested during that quarter. This exceptionally high ratio suggests a very efficient utilization of working capital.

On the other hand, the lower ratios observed in Q1 2023 (0.50), Q4 2022 (0.54), and Q3 2022 (0.63) signify that the company was less efficient in converting its working capital into revenue during those periods. A ratio below 1.0 may indicate that the company is struggling to efficiently manage its working capital resources.

Overall, it is important for Ironwood Pharmaceuticals Inc to consistently monitor and improve its working capital turnover to ensure optimal efficiency in utilizing its working capital resources to generate revenue.