Ironwood Pharmaceuticals Inc (IRWD)

Return on assets (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
Net income (ttm)	US$ in thousands	-1,002,242	-952,288	-917,292	181,978	175,065	167,572	173,100	527,323	528,448	530,278	508,856	142,757	106,176	110,830	97,055	84,134	21,505	-41,846	-236,845	-298,508
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
ROA		-212.76%	-181.71%	-152.07%	15.75%	15.91%	16.11%	17.74%	48.67%	46.89%	49.13%	50.52%	23.82%	18.99%	22.51%	21.88%	20.82%	5.34%	-12.52%	-75.02%	-82.11%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $-1,002,242K ÷ $471,073K
= -212.76%

Ironwood Pharmaceuticals Inc's return on assets (ROA) has been highly volatile over the past eight quarters. The ROA plummeted to negative values in the most recent quarters, with Q4 2023 showing the lowest ROA at -212.76%, indicating that the company generated substantial losses relative to its assets in that period. This sharp decline in ROA suggests that the company is not effectively utilizing its assets to generate profits.

Furthermore, the negative trend in ROA observed in the last few quarters raises concerns about the company's operational efficiency and profitability. In contrast, the positive ROA values in Q1 and Q2 of 2022 demonstrated that the company was able to generate profits relative to its assets during that period. However, the subsequent decline in ROA indicates a deterioration in the company's financial performance.

Overall, the inconsistent and negative ROA values suggest that Ironwood Pharmaceuticals Inc may be facing challenges in efficiently utilizing its assets to generate profits. This trend underscores the importance of closely monitoring the company's operations and financial strategies to improve its ROA and ensure long-term financial sustainability.