Ironwood Pharmaceuticals Inc (IRWD)

Current ratio

		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
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
Current ratio		0.84	0.90	1.04	36.34	30.58	25.78	26.52	4.82	4.61	4.77	4.62	22.80	15.41	13.17	14.02	12.10	7.50	4.88	1.99	1.70

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 fluctuated over the past eight quarters, indicating changes in the company's short-term liquidity position. In Q1 2023, the current ratio was notably low at 0.84, suggesting that the company may have had challenges meeting its short-term obligations with its current assets. However, this ratio improved in the subsequent quarters, reaching 0.90 in Q2 2023 and further improving to 1.04 in Q3 2023.

The sudden spike in the current ratio to 36.34 in Q1 2023 is an anomaly and is likely due to a significant increase in current assets relative to current liabilities, potentially caused by a one-time event or accounting adjustment. This drastic change may skew the overall trend analysis for this period.

Overall, the current ratio of Ironwood Pharmaceuticals Inc has shown some variability in recent quarters, with a general improvement in liquidity position from Q1 2023 to Q3 2023. However, analysts should be mindful of outlier values like the exceptionally high ratio in Q1 2023 when interpreting the company's short-term financial health.