Ironwood Pharmaceuticals Inc (IRWD)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	-1,002,240	175,065	528,448	106,176	21,505
Total assets	US$ in thousands	471,073	1,100,520	1,126,930	559,238	402,748
ROA		-212.76%	15.91%	46.89%	18.99%	5.34%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $-1,002,240K ÷ $471,073K
= -212.76%

Ironwood Pharmaceuticals Inc's return on assets (ROA) has displayed significant fluctuations over the past five years. In 2019, the ROA stood at 5.34%, indicating that the company generated $0.0534 in profit for every dollar of assets. This figure increased notably to 18.99% in 2020, suggesting a substantial improvement in the company's ability to generate earnings from its assets.

However, the ROA experienced a sharp decline in 2021, dropping to 46.89%. This could be a result of an increase in total assets without a proportionate increase in net income. The following year, in 2022, the ROA decreased to 15.91%, indicating a continued decline in profitability relative to its asset base.

The most recent data for 2023 show a significantly negative ROA of -212.76%, suggesting that Ironwood Pharmaceuticals Inc incurred a substantial net loss relative to its asset base. This dramatic negative ROA indicates that the company's assets were not effectively utilized to generate profits during that period.

In conclusion, the fluctuating ROA for Ironwood Pharmaceuticals Inc over the past five years indicates variability in the company's efficiency in generating profits from its assets. Further analysis would be needed to understand the underlying factors contributing to these fluctuations and assess the company's overall financial performance.