Ironwood Pharmaceuticals Inc (IRWD)

Operating profit margin

		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
Operating income (ttm)	US$ in thousands	-945,431	-914,657	-886,207	252,588	250,337	238,566	235,264	244,707	232,259	227,051	207,496	175,111	142,940	141,149	161,420	150,284	120,123	100,391	-112,067	-148,321
Revenue (ttm)	US$ in thousands	429,548	419,194	422,558	411,359	404,724	414,655	405,461	404,251	391,925	391,475	387,138	375,652	361,301	370,922	366,956	377,722	370,977	375,368	345,294	323,795
Operating profit margin		-220.10%	-218.19%	-209.72%	61.40%	61.85%	57.53%	58.02%	60.53%	59.26%	58.00%	53.60%	46.62%	39.56%	38.05%	43.99%	39.79%	32.38%	26.74%	-32.46%	-45.81%

December 31, 2023 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $-945,431K ÷ $429,548K
= -220.10%

Ironwood Pharmaceuticals Inc's operating profit margin has shown some fluctuations over the past 8 quarters. The trend indicates a general decline from Q1 2022 to Q4 2023. The margin decreased from 57.84% in Q1 2022 to 38.02% in Q4 2023.

There was a significant drop in the margin from Q1 2023 to Q4 2023, falling from 60.55% to 38.02%. This could be concerning as it represents a substantial decline in profitability within a single year.

However, it is important to note that Ironwood Pharmaceuticals Inc had relatively high operating profit margins in the previous quarters, ranging from 50.85% to 60.97%. This suggests that the company has historically been able to maintain strong profitability levels, which could be a positive sign for investors.

Overall, while the recent decline in operating profit margin raises some red flags, the company's historical performance indicates a generally strong profitability track record. Further analysis and monitoring of future quarters will be necessary to determine if the declining trend persists or if it is a temporary fluctuation.