Ironwood Pharmaceuticals Inc (IRWD)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 92,154 | 656,203 | 620,129 | 362,564 | 177,023 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 129,122 | 115,458 | 114,042 | 122,351 | 117,246 |
| Total current liabilities | US$ in thousands | 276,101 | 25,525 | 161,698 | 32,173 | 40,929 |
| Quick ratio | 0.80 | 30.23 | 4.54 | 15.07 | 7.19 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($92,154K
+ $—K
+ $129,122K)
÷ $276,101K
= 0.80
The quick ratio of Ironwood Pharmaceuticals Inc has shown significant fluctuations over the past five years. In 2023, the quick ratio decreased to 0.84 from 30.53 in 2022, indicating a substantial decline in liquidity. This sharp decrease may suggest potential financial difficulties in meeting short-term obligations with liquid assets alone.
It is important to note that the quick ratio is a measure of a company's ability to meet its short-term liabilities using its most liquid assets. A ratio below 1.0 typically indicates that a company may have difficulty paying off its current liabilities if they all came due at once.
The quick ratio of Ironwood Pharmaceuticals Inc in 2023 raises concerns about its short-term financial health and liquidity position. Further analysis of the company's financial statements and cash flow should be conducted to understand the factors contributing to this significant decrease in the quick ratio and to assess the company's overall financial stability.
Peer comparison
Dec 31, 2023