Ironwood Pharmaceuticals (Ironwood Pharmaceuticals) Debt-to-EBITDA : 14.04 (As of Mar. 2024)

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What is Ironwood Pharmaceuticals Debt-to-EBITDA?

Debt-to-EBITDA measures a company's ability to pay off its debt.

Ironwood Pharmaceuticals's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $202.9 Mil. Ironwood Pharmaceuticals's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $487.5 Mil. Ironwood Pharmaceuticals's annualized EBITDA for the quarter that ended in Mar. 2024 was $49.2 Mil. Ironwood Pharmaceuticals's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2024 was 14.04.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Ironwood Pharmaceuticals's Debt-to-EBITDA or its related term are showing as below:

IRWD' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -67.95 Med: -0.94 Max: 4.26
Current: -0.71

During the past 13 years, the highest Debt-to-EBITDA Ratio of Ironwood Pharmaceuticals was 4.26. The lowest was -67.95. And the median was -0.94.

IRWD's Debt-to-EBITDA is ranked worse than
100% of 657 companies
in the Drug Manufacturers industry
Industry Median: 1.7 vs IRWD: -0.71

Ironwood Pharmaceuticals Debt-to-EBITDA Historical Data

The historical data trend for Ironwood Pharmaceuticals's Debt-to-EBITDA can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Ironwood Pharmaceuticals Debt-to-EBITDA Chart

Ironwood Pharmaceuticals Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-EBITDA

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4.26

3.20

2.04

1.59

-0.77

Ironwood Pharmaceuticals Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Debt-to-EBITDA	Get a 7-Day Free Trial															1.55	-0.19	4.42	4.41	14.04

Competitive Comparison of Ironwood Pharmaceuticals's Debt-to-EBITDA

For the Drug Manufacturers - Specialty & Generic subindustry, Ironwood Pharmaceuticals's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Ironwood Pharmaceuticals's Debt-to-EBITDA Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Ironwood Pharmaceuticals's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Ironwood Pharmaceuticals's Debt-to-EBITDA falls into.

Ironwood Pharmaceuticals Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Ironwood Pharmaceuticals's Debt-to-EBITDA for the fiscal year that ended in Dec. 2023 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(202.686	+	512.852)	/	-924.84
	=	-0.77

Ironwood Pharmaceuticals's annualized Debt-to-EBITDA for the quarter that ended in Mar. 2024 is calculated as

Debt-to-EBITDA	=	Total Debt			/	EBITDA
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	EBITDA
	=	(202.942	+	487.481)	/	49.176
	=	14.04

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Mar. 2024) EBITDA data.

Ironwood Pharmaceuticals (NAS:IRWD) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.

Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

Ironwood Pharmaceuticals Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of Ironwood Pharmaceuticals's Debt-to-EBITDA provided by GuruFocus.com. Please click on the following links to see related term pages.

Ironwood Pharmaceuticals (Ironwood Pharmaceuticals) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Ironwood Pharmaceuticals Inc (NAS:IRWD) » Definitions » Debt-to-EBITDA

Comparable Companies

Traded in Other Exchanges

I76:Germany I76:Germany

Address

100 Summer Street, Suite 2300, Boston, MA, USA, 02110

Website

https://www.ironwoodpharma.com

Ironwood Pharmaceuticals is a specialty and generic drug manufacturing company that operates a human therapeutics segment. The company is focused on advancing innovative product opportunities in areas of large unmet need, including irritable bowel syndrome with constipation, chronic idiopathic constipation, hyperuricemia associated with uncontrolled gout, uncontrolled gastroesophageal reflux disease, and vascular and fibrotic diseases. The company considers collaborative licenses, commercial agreements, and acquisition investment to be potential components of its operational growth strategy for expanding its research, development, manufacturing, and marketing capabilities.

Executives

Marla L Kessler	director	C/O IRONWOOD PHARMACEUTICALS, INC., 100 SUMMER STREET, SUITE 2300, BOSTON MA 02110
Andrew Davis	officer: SVP, Chief Business Officer	100 SUMMER STREET, SUITE 2300, BOSTON MA 02110
Sravan Kumar Emany	officer: SVP, Chief Financial Officer	100 SUMMER ST, SUITE 2300, BOSTON MA 02109
Ronald Silver	officer: Principal Accounting Officer	100 SUMMER STREET, SUITE 2300, BOSTON MA 02110
Minardo John	officer: Chief Legal Officer	100 SUMMER STREET, SUITE 2300, BOSTON MA 02110
Thomas A Mccourt	officer: Chief Commercial Officer	C/O IRONWOOD PHARMACEUTICALS, INC., 100 SUMMER STREET, SUITE 2300, BOSTON MA 02110
Michael Shetzline	officer: CMO,SVP,Head-Res&Drug	100 SUMMER STREET, SUITE 2300, BOSTON MA 02110
Jason Rickard	officer: SVP, Chief Operating Officer	100 SUMMER STREET, SUITE 2300, BOSTON MA 02110
Mark G Currie	officer: Chief Scientific Officer	C/O CYCLERION THERAPEUTICS, INC., 301 BINNEY STREET, CAMBRIDGE MA 02142
Julie Mchugh	director	C/O IRONWOOD PHARMACEUTICALS, INC., 100 SUMMER STREET, SUITE 2300, BOSTON MA 02110
Sarissa Capital Management Lp	10 percent owner	660 STEAMBOAT ROAD, GREENWICH CT 06830
Alexander J Denner	director	C/O SARISSA CAPITAL MANAGEMENT LP, 660 STEAMBOAT ROAD, 3RD FLOOR, GREENWICH CT 06830
Edward P Owens	director	C/O IRONWOOD PHARMACEUTICALS, INC., 100 SUMMER STREET, SUITE 2300, BOSTON MA 02110
Gina Consylman	officer: Chief Accounting Officer	C/O IRONWOOD PHARMACEUTICALS, INC., 100 SUMMER STREET, SUITE 2300, BOSTON MA 02110
Kilroy Conor	officer: SVP, GC & Secretary	100 SUMMER STREET, SUITE 2300, BOSTON MA 02110