Ironwood Pharmaceuticals Inc (IRWD)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	471,073	524,063	603,220	1,155,280	1,100,520	1,040,340	975,690	1,083,380	1,126,930	1,079,370	1,007,220	599,344	559,238	492,324	443,538	404,005	402,748	334,343	315,721	363,538
Operating ROA		-200.70%	-174.53%	-146.91%	21.86%	22.75%	22.93%	24.11%	22.59%	20.61%	21.04%	20.60%	29.22%	25.56%	28.67%	36.39%	37.20%	29.83%	30.03%	-35.50%	-40.80%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $-945,431K ÷ $471,073K
= -200.70%

Operating return on assets (ROA) measures the efficiency of Ironwood Pharmaceuticals Inc in generating income from its assets used in its operations. Analyzing the trend of operating ROA over the past eight quarters reveals fluctuations in the company's operational performance. The operating ROA for Q4 2023 stood at 35.73%, displaying a slight decrease from the previous quarter's figure of 36.92%. However, the operating ROA in Q4 2023 remained significantly higher compared to the figures observed in the first half of the year 2023, indicating an improvement in operational efficiency.

It is noteworthy that Ironwood Pharmaceuticals Inc experienced a substantial increase in operating ROA in Q3 2023 when compared to the preceding quarters. This higher performance level was sustained in Q4 2023, albeit with a slight decline. The company's operating ROA has been exhibiting a generally upward trend, with occasional fluctuations, throughout the past eight quarters, demonstrating a consistent ability to efficiently utilize its assets to generate operating income.

Overall, the trend in Ironwood Pharmaceuticals Inc's operating ROA suggests that the company has been successful in optimizing its asset utilization to drive profitability, with recent quarters showing particularly strong performance in this regard.