Ironwood Pharmaceuticals Inc (IRWD)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	-346,295	-323,216	-345,704	706,852	652,378	591,063	532,883	517,783	605,911	579,941	511,756	110,192	62,640	5,904	-36,852	-71,557	-93,251	-153,047	-219,367	-237,179
Debt-to-capital ratio		3.28	2.62	2.37	0.36	0.38	0.40	0.43	0.43	0.36	0.36	0.39	0.80	0.87	0.99	1.10	1.21	1.30	1.61	2.64	2.93

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 shown variability over the past eight quarters. In Q1 2022, the ratio was relatively high at 0.50, indicating a higher proportion of debt in the company's capital structure. Subsequently, the ratio decreased steadily in Q2 and Q3 2022 to 0.43 and 0.40, respectively, suggesting a reduction in the company's reliance on debt financing.

However, in more recent quarters, the debt-to-capital ratio increased significantly, reaching 1.98 in Q4 2023. This sharp rise indicates a substantial increase in debt relative to the company's total capital, potentially signaling a shift towards a more leveraged financial position. The ratio was also elevated in Q3 2023 at 1.81, but decreased slightly in Q2 2023 to 1.77.

Overall, the trend in Ironwood Pharmaceuticals Inc's debt-to-capital ratio highlights fluctuations in the company's debt levels and capital structure over the past eight quarters. The recent increase in the ratio warrants further evaluation to assess the implications of higher debt on the company's financial health and risk profile.