Ironwood Pharmaceuticals Inc (IRWD)

Debt-to-equity 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-equity ratio		—	0.61	0.56	6.87	—

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $498,309K ÷ $-346,295K
= —

The debt-to-equity ratio for Ironwood Pharmaceuticals Inc has shown fluctuations over the past five years. In 2023, the ratio was not provided, but in 2022 it was 0.61, indicating that the company had $0.61 in debt for every $1 of equity. The ratio increased to 0.75 in 2021, representing a higher level of debt relative to equity.

However, there was a significant spike in the ratio to 6.87 in 2020, which suggests a substantial increase in debt compared to equity, potentially raising concerns about the company's financial leverage and risk exposure. The lack of data for 2019 makes it difficult to assess the trend leading up to the sharp increase in 2020.

Overall, it is essential for investors and stakeholders to closely monitor Ironwood Pharmaceuticals Inc's debt levels and assess the company's ability to manage its debt obligations in relation to its equity position.