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Ironwood PharmaceuticalsIRWD -0.23%65 Cash Ratio is 2.41 as of Jun. 2026, which is 26% below its 10-year median of 3.24. GuruFocus rates IRWD with a GF Score™ of 65/100 and a GF Value™ of $4.55 (Fairly Valued). The stock has 6 warning signs investors should review. Among 961 Drug Manufacturers companies, Ironwood Pharmaceuticals ranks better than 81.17% on this metric.
Ironwood Pharmaceuticals has a Cash Ratio of 2.41. It generally indicates that the company is able to cover all short-term debt and still have cash remaining.
The historical rank and industry rank for Ironwood Pharmaceuticals's Cash Ratio or its related term are showing as below:
IRWD'
s Cash Ratio Range Over the Past 10 Years
Min: 0.33 Med: 3.24 Max: 31.05
Current: 2.41
During the past 13 years, Ironwood Pharmaceuticals's highest Cash Ratio was 31.05. The lowest was 0.33. And the median was 3.24.
IRWD's Cash Ratio is ranked better than 81.17% of 961
companies
in the Drug Manufacturers industry
Industry Median: 0.6
vs IRWD: 2.41
Ironwood Pharmaceuticals (NAS:IRWD) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Ironwood Pharmaceuticals Cash Ratio Related Terms
Ironwood Pharmaceuticals Cash Ratio Historical Data
* 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.
For the Drug Manufacturers - Specialty & Generic subindustry, Ironwood Pharmaceuticals's Cash Ratio, along with its competitors' market caps and Cash Ratio 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 Cash Ratio vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Ironwood Pharmaceuticals's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Ironwood Pharmaceuticals's Cash Ratio falls into.
* 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.
Ironwood Pharmaceuticals (IRWD) has a Cash Ratio of 2.41 as of Jun. 2026. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Ironwood Pharmaceuticals and its competitors. This is 26% below median its historical median of 3.24. Over the past decade, Ironwood Pharmaceuticals' Cash Ratio has ranged from 0.33 to 31.05. According to the industry distribution chart, Ironwood Pharmaceuticals ranks #181 out of 961 companies in the Drug Manufacturers industry, placing it in the top 18.8%.
Is Ironwood Pharmaceuticals' Cash Ratio too high?
Ironwood Pharmaceuticals' current Cash Ratio of 2.41 is 26% below median its 10-year median of 3.24. Over the past 10 years, this metric has ranged from a low of 0.33 to a high of 31.05. The Drug Manufacturers industry median Cash Ratio is 0.60. Ironwood Pharmaceuticals' value of 2.41 is 301.7% above this industry median. Based on the distribution chart, Ironwood Pharmaceuticals ranks #181 out of 961 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Ironwood Pharmaceuticals has a GF Score™ of 65/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Ironwood Pharmaceuticals' Cash Ratio compare to TLRY and AQST?
According to the Drug Manufacturers industry distribution chart, Ironwood Pharmaceuticals ranks #181 out of 961 companies for Cash Ratio. This places Ironwood Pharmaceuticals in the top 19% of its industry — outperforming the majority of peers. The industry median Cash Ratio is 0.60. Ironwood Pharmaceuticals' value of 2.41 is 301.7% above this benchmark. Historically, Ironwood Pharmaceuticals' own Cash Ratio has ranged from 0.33 to 31.05 over the past decade. While the company's 10-year median is 3.24 vs. the industry median of 0.60, Ironwood Pharmaceuticals has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Ratio for a Drug Manufacturers company?
The median Cash Ratio among Drug Manufacturers companies is 0.60, based on 961 companies in the industry. Companies in the top quartile (top 25%) have a Cash Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cash Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Ironwood Pharmaceuticals's current Cash Ratio of 2.41 is 301.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Ratio mean?
A high Cash Ratio can signal that a stock is expensive relative to its fundamentals. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Ironwood Pharmaceuticals and its competitors. For the Drug Manufacturers industry, the median Cash Ratio is 0.60 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Ironwood Pharmaceuticals's current Cash Ratio is 2.41, which is 26% below median its own 10-year median of 3.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Ironwood Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Ironwood Pharmaceuticals (IRWD) is currently considered Fairly Valued. The stock's GF Value™ is $4.55, compared to a current price of $4.36 — trading 4.2% below its estimated fair value. The current Cash Ratio is 2.41, which is 26% below median its 10-year median of 3.24 and 301.7% above the Drug Manufacturers industry median of 0.60. Ironwood Pharmaceuticals' overall GF Score™ is 65/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For Ironwood Pharmaceuticals (IRWD), the current Cash Ratio is 2.41 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Ironwood Pharmaceuticals (IRWD) Overvalued in 2026?
Based on GuruFocus' analysis, Ironwood Pharmaceuticals stock appears to be undervalued.
The current stock price of $4.36 is trading 4.2% below its estimated GF Value™ of $4.55.
GuruFocus considers Ironwood Pharmaceuticals to be Fairly Valued.
Key valuation signals for IRWD:
Cash Ratio: 2.41 (26% below median its 10-year median of 3.24)
GF Value™: $4.55 vs. price of $4.36 (4.2% below fair value)
Industry Position: 301.7% above the Drug Manufacturers median (#181 of 961)
No single metric tells the full story. See the IRWD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Ironwood Pharmaceuticals Inc is a biotechnology company developing and commercializing life-changing therapies for people living with gastrointestinal, or GI, and rare diseases. It is focused on the development and commercialization of inventive product opportunities in areas of unmet need, leveraging its demonstrated expertise and capabilities in GI and rare diseases. LINZESS is its commercial product. LINZESS is also available for the treatment of adults with IBS-C or CIC in Mexico, adults with IBS-C or chronic constipation in Japan, and adults with IBS-C in China. Linaclotide is available under the trademarked name CONSTELLA for the treatment of adults with IBS-C or CIC and pediatric patients ages 6-17 years old with FC in Canada, and to adults with IBS-C in certain European countries.
65GF Score
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