Ironwood Pharmaceuticals Inc (IRWD)

Quick 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
Cash	US$ in thousands	92,154	110,164	175,321	740,342	656,203	574,188	504,365	593,371	620,129	574,276	492,699	438,469	362,564	307,555	253,252	231,143	177,023	139,231	98,908	119,045
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	129,122	124,546	118,990	115,749	115,458	116,545	102,357	105,515	114,042	101,773	102,252	87,152	122,351	113,250	105,379	91,107	117,246	96,570	103,786	72,617
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
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

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 fluctuations over the past eight quarters. The quick ratio measures the company's ability to meet its short-term financial obligations with its most liquid assets excluding inventory, and a ratio above 1 indicates that the company has enough liquid assets to cover its current liabilities.

In Q1 2023, the quick ratio was exceptionally high at 36.28, suggesting a significant surplus of liquid assets compared to short-term liabilities. This could be a result of a specific event, such as a large cash inflow or the timing of payments and receipts.

The quick ratio then decreased in Q2 and Q3 2023 but remained above 1, indicating adequate liquidity to cover short-term obligations. However, the ratio declined further in Q4 2023 to 0.84, indicating a potential liquidity strain as the company may be less able to meet its short-term obligations with available liquid assets.

Overall, Ironwood Pharmaceuticals Inc's quick ratio has exhibited volatility, with fluctuations indicating a varying ability to meet short-term obligations with liquid assets. It may be important for the company to monitor its liquidity position closely to ensure financial stability and ability to address short-term liabilities.