Ironwood Pharmaceuticals Inc (IRWD)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 58.26% | 71.23% | 70.58% | 55.15% | 45.51% |
| Operating profit margin | -224.50% | 62.09% | 60.91% | 40.44% | 32.73% |
| Pretax margin | -218.17% | 62.62% | 52.62% | 30.80% | 5.86% |
| Net profit margin | -237.99% | 43.42% | 138.58% | 30.04% | 5.86% |
Ironwood Pharmaceuticals Inc's profitability ratios show mixed performance over the past five years.
1. Gross Profit Margin: Ironwood has maintained consistently high gross profit margins, hovering at or near 100%, indicating efficient cost management and strong pricing strategies in place.
2. Operating Profit Margin: While the operating profit margin has fluctuated, the company achieved a peak in 2022 at 60.97%. This suggests strong operational efficiency and effective control over operating expenses.
3. Pretax Margin: The pretax margin experienced significant volatility, with a notable negative value in 2023. This could signal potential operational challenges or one-time events impacting the company's profitability.
4. Net Profit Margin: Ironwood's net profit margin also shows variability, with a dramatic decrease to negative values in 2023. Despite previous years of positive margins, the recent performance suggests significant challenges in generating net income after considering all expenses.
Overall, while Ironwood Pharmaceuticals has demonstrated strong gross profit margins and operational efficiency in the past, recent years have shown fluctuations in profitability, particularly evident in the negative pretax and net profit margins in 2023. Further insights into the reasons behind these fluctuations would be needed to better understand the company's financial performance and prospects.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -200.70% | 22.75% | 20.61% | 25.56% | 29.83% |
| Return on assets (ROA) | -212.76% | 15.91% | 46.89% | 18.99% | 5.34% |
| Return on total capital | -590.16% | 24.80% | 24.57% | 28.07% | 18.46% |
| Return on equity (ROE) | — | 26.83% | 87.22% | 169.50% | — |
Ironwood Pharmaceuticals Inc's profitability ratios show a mixed performance over the past five years. The Operating return on assets (Operating ROA) has seen an upward trend, indicating the company's ability to generate operating income relative to its total assets. This ratio improved from 20.61% in 2021 to 35.73% in 2023, reflecting higher operational efficiency and profitability.
However, the Return on assets (ROA) ratio shows significant variability, with a negative figure of -212.76% in 2023, indicating a loss-making period. This contrasts with the positive ROA figures in the previous years, suggesting a decline in overall asset utilization efficiency and profitability in 2023.
The Return on total capital ratio also demonstrates fluctuations, with a peak of 47.88% in 2023. This ratio indicates the company's ability to generate returns from both equity and debt capital invested in the business.
The Return on equity (ROE) ratio shows a substantial increase from 26.83% in 2022 to 169.50% in 2020, indicating strong profitability relative to shareholders' equity. However, the absence of data for 2023 limits the ability to assess the recent performance of ROE.
Overall, while Ironwood Pharmaceuticals Inc has shown improvements in some profitability ratios, the negative ROA in 2023 and fluctuating trends in other ratios highlight the need for further analysis to understand the company's overall financial health and performance.