Ironwood Pharmaceuticals Inc (IRWD)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 233,288 | 780,626 | 745,225 | 495,839 | 306,852 |
| Total current liabilities | US$ in thousands | 276,101 | 25,525 | 161,698 | 32,173 | 40,929 |
| Current ratio | 0.84 | 30.58 | 4.61 | 15.41 | 7.50 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $233,288K ÷ $276,101K
= 0.84
The current ratio of Ironwood Pharmaceuticals Inc has exhibited significant fluctuations over the past five years. The current ratio stood at 0.84 as of December 31, 2023, indicating that the company may be facing challenges in meeting its short-term obligations with its current assets. This suggests a potential liquidity concern for the company in the most recent period.
In contrast, the current ratio was exceptionally high at 30.58 as of December 31, 2022, likely reflective of an influx of current assets relative to current liabilities during that period. This may suggest that the company had more than enough current assets to cover its short-term obligations in the previous year.
Looking further back, the current ratio was 4.61 as of December 31, 2021, 15.41 as of December 31, 2020, and 7.50 as of December 31, 2019. These figures indicate varying levels of liquidity and ability to meet short-term obligations in those respective years.
It is important for stakeholders to delve deeper into the reasons behind these fluctuations in the company's current ratio to assess the overall financial health and stability of Ironwood Pharmaceuticals Inc.
Peer comparison
Dec 31, 2023