Ironwood Pharmaceuticals Inc (IRWD)

Financial leverage 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
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
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
Financial leverage ratio		—	—	—	1.63	1.69	1.76	1.83	2.09	1.86	1.86	1.97	5.44	8.93	83.39	—	—	—	—	—	—

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $471,073K ÷ $-346,295K
= —

The financial leverage ratio of Ironwood Pharmaceuticals Inc has been gradually decreasing over the past quarters, indicating a trend towards lower financial leverage. The ratio was 2.09 in Q1 2022, which means that for every dollar of equity, the company had $2.09 of debt. This high ratio suggests a higher level of debt relative to equity in the company's capital structure.

However, there has been a consistent decrease in the financial leverage ratio since then, reaching 1.63 in Q1 2023. This decrease indicates that the company may be reducing its reliance on debt financing and strengthening its equity position. A lower financial leverage ratio generally signifies a more conservative capital structure, potentially reducing financial risk and improving the company's financial stability.

Overall, the decreasing trend in the financial leverage ratio of Ironwood Pharmaceuticals Inc suggests a positive shift towards a more balanced and sustainable capital structure. It is essential for investors and stakeholders to monitor this ratio to assess the company's ability to meet its financial obligations and manage risks effectively.