Ironwood Pharmaceuticals Inc (IRWD)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	498,309	396,251	337,333	430,256	407,994
Total stockholders’ equity	US$ in thousands	-346,295	652,378	605,911	62,640	-93,251
Debt-to-capital ratio		3.28	0.38	0.36	0.87	1.30

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $498,309K ÷ ($498,309K + $-346,295K)
= 3.28

The debt-to-capital ratio of Ironwood Pharmaceuticals Inc has fluctuated over the past five years, with a significant increase from 0.38 in 2022 to 1.98 in 2023. This indicates that the company's level of debt in relation to its total capital has increased substantially, potentially signaling a higher risk profile and financial leverage. In 2023, nearly half of Ironwood's capital structure was comprised of debt, reflecting a higher dependency on borrowed funds to finance its operations and growth initiatives. It's essential for stakeholders to closely monitor this trend to assess the company's ability to manage its debt obligations and maintain financial stability.