Ironwood Pharmaceuticals Inc (IRWD)

Pretax 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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	-918,748	-877,458	-840,854	261,861	252,465	226,403	216,168	216,786	200,647	198,901	175,041	145,842	108,861	112,219	97,055	84,134	21,505	-41,846	-236,845	-298,508
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
Pretax margin		-213.89%	-209.32%	-198.99%	63.66%	62.38%	54.60%	53.31%	53.63%	51.20%	50.81%	45.21%	38.82%	30.13%	30.25%	26.45%	22.27%	5.80%	-11.15%	-68.59%	-92.19%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $-918,748K ÷ $429,548K
= -213.89%

Ironwood Pharmaceuticals Inc's pretax margin has shown variability over the past eight quarters. The company experienced negative pretax margins in the most recent quarters, with Q4 2023 and Q3 2023 showing the lowest values at -214.14% and -209.57% respectively. This indicates that the company's operating expenses and other charges exceeded its revenues before accounting for taxes.

The positive pretax margins in Q1 2023 (62.77%), as well as in the quarters of 2022, suggest that the company was generating profits before tax in those periods. However, the downward trend from Q1 2023 to the most recent quarters raises concerns about the company's profitability and cost management.

The significant fluctuations in Ironwood Pharmaceuticals Inc's pretax margin highlight the need for the company to closely monitor its expenses, revenue generation strategies, and overall financial performance to ensure sustainable profitability in the future.