Ironwood Pharmaceuticals Inc (IRWD)

Debt-to-assets ratio

		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
Long-term debt	US$ in thousands	498,309	523,141	597,974	396,653	396,251	395,850	395,451	395,053	337,333	333,212	329,155	436,078	430,256	424,539	418,924	413,409	407,994	402,675	352,725	360,087
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
Debt-to-assets ratio		1.06	1.00	0.99	0.34	0.36	0.38	0.41	0.36	0.30	0.31	0.33	0.73	0.77	0.86	0.94	1.02	1.01	1.20	1.12	0.99

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $498,309K ÷ $471,073K
= 1.06

The debt-to-assets ratio of Ironwood Pharmaceuticals Inc has shown a general upward trend over the past two years, indicating an increase in the company's reliance on debt to finance its assets. In Q4 2022, the ratio was at 0.36 and has steadily increased to 1.48 in Q4 2023. This significant rise suggests a substantial shift towards a higher level of debt relative to assets within a relatively short time frame. It is worth noting that the ratio fluctuated between 0.34 and 0.48 in the first three quarters of 2023, showing some variability in the company's debt management.

A debt-to-assets ratio above 1 indicates that the company has more debt than assets, implying a higher financial risk. Therefore, the current ratio of 1.48 in Q4 2023 signals a potential cause for concern regarding the company's financial leverage and solvency. Investors and stakeholders may want to monitor Ironwood Pharmaceuticals Inc closely to assess how effectively the company manages its debt levels and whether it can sustain its current financial position in the long term.