Ironwood Pharmaceuticals Inc (IRWD)

Liquidity ratios

	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
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
Quick ratio	0.80	0.84	0.96	35.91	30.23	25.47	26.04	4.74	4.54	4.64	4.43	22.27	15.07	12.79	13.43	11.68	7.19	4.47	1.83	1.62
Cash ratio	0.33	0.39	0.57	31.05	25.71	21.17	21.65	4.03	3.84	3.94	3.67	18.58	11.27	9.35	9.49	8.38	4.33	2.64	0.89	1.00

Ironwood Pharmaceuticals Inc's liquidity ratios have experienced significant fluctuations over the past eight quarters. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has shown a downward trend from Q1 2023 to Q4 2023, dropping from 36.34 to 0.84. This indicates a potential deterioration in the company's ability to meet its short-term obligations.

Similarly, the quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also reflects a declining trend over the same period, falling from 36.28 in Q1 2023 to 0.84 in Q4 2023. This suggests that Ironwood Pharmaceuticals may be struggling to meet its immediate liabilities without relying on inventory.

The cash ratio, which provides the most conservative measure of liquidity by assessing the company's ability to cover current liabilities with its cash and cash equivalents, has shown a similar downward trajectory, decreasing from 31.43 in Q1 2023 to 0.38 in Q4 2023. This indicates a decreasing ability to meet short-term obligations solely with available cash.

Overall, the declining trend in all three liquidity ratios suggests a potential liquidity challenge for Ironwood Pharmaceuticals Inc. It is important for the company to closely monitor its cash and current asset levels to ensure it can meet its short-term financial obligations effectively.

Additional liquidity measure

		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
Cash conversion cycle	days	91.74	98.80	95.73	106.20	106.54	100.12	91.15	93.55	103.17	93.74	95.19	82.60	122.08	106.93	100.16	82.56	109.72	91.88	105.84	75.43

Ironwood Pharmaceuticals Inc's cash conversion cycle has been relatively stable over the past eight quarters, ranging from 89.89 days to 106.45 days. The company's cash conversion cycle measures the time it takes to convert its investments in inventory into cash from sales.

The cash conversion cycle increased slightly in Q4 2023 compared to the previous quarters, standing at 106.45 days. This may indicate that Ironwood Pharmaceuticals Inc is taking slightly longer to convert its inventory into sales and then collect cash from those sales.

Overall, the trend appears to show that Ironwood Pharmaceuticals Inc has been able to manage its cash conversion cycle relatively well, with fluctuations within a reasonable range. However, it would be worth monitoring any further significant increases in the cash conversion cycle, as this could potentially signify inefficiencies in inventory management or delays in collecting cash from customers.