Ironwood Pharmaceuticals Inc (IRWD)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 471,073 | 1,100,520 | 1,126,930 | 559,238 | 402,748 |
| Total stockholders’ equity | US$ in thousands | -346,295 | 652,378 | 605,911 | 62,640 | -93,251 |
| Financial leverage ratio | — | 1.69 | 1.86 | 8.93 | — |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $471,073K ÷ $-346,295K
= —
Ironwood Pharmaceuticals Inc's financial leverage ratio has fluctuated over the past five years. The ratio was 1.69 in 2022, indicating that the company had $1.69 in debt for every $1 of equity. This ratio decreased from 1.86 in 2021, suggesting a slightly more favorable debt-to-equity mix.
In 2020, the financial leverage ratio spiked to 8.93, indicating a significant increase in leverage that year, possibly due to a large issuance of debt relative to equity. The absence of data for 2019 makes it challenging to ascertain the trend before 2020.
Overall, the varying financial leverage ratios reflect changes in Ironwood Pharmaceuticals Inc's capital structure and the level of debt used to finance its operations. It is essential for investors and stakeholders to monitor these ratios to assess the company's risk exposure and financial health.
Peer comparison
Dec 31, 2023