Ironwood Pharmaceuticals (FRA:I76) ROCE % : 24.76% (As of Mar. 2024)

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What is Ironwood Pharmaceuticals ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Ironwood Pharmaceuticals's annualized ROCE % for the quarter that ended in Mar. 2024 was 24.76%.

Ironwood Pharmaceuticals ROCE % Historical Data

The historical data trend for Ironwood Pharmaceuticals's ROCE % 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.

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Ironwood Pharmaceuticals ROCE % Chart

Ironwood Pharmaceuticals Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

ROCE %

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33.56

29.97

31.87

26.27

-142.35

Ironwood Pharmaceuticals Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
ROCE %	Get a 7-Day Free Trial															24.16	-596.02	61.64	72.10	24.76

Ironwood Pharmaceuticals ROCE % Calculation

Ironwood Pharmaceuticals's annualized ROCE % for the fiscal year that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2023 )		(A: Dec. 2022 )		(A: Dec. 2023 )
	=	-849.545	/	( ( (1038.89 - 24.096)	+	(431.974 - 253.185) )	/ 2 )
	=	-849.545	/	( (1014.794	+	178.789)	/ 2 )
	=	-849.545	/	596.7915
	=	-142.35 %

Ironwood Pharmaceuticals's ROCE % of for the quarter that ended in Mar. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Mar. 2024 )		(Q: Dec. 2023 )		(Q: Mar. 2024 )
	=	43.356	/	( ( (431.974 - 253.185)	+	(403.713 - 232.247) )	/ 2 )
	=	43.356	/	( ( 178.789	+	171.466 )	/ 2 )
	=	43.356	/	175.1275
	=	24.76 %

(1) Note: The EBIT data used here is four times the quarterly (Mar. 2024) EBIT data.

Ironwood Pharmaceuticals (FRA:I76) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

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Ironwood Pharmaceuticals (FRA:I76) Business Description

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GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Ironwood Pharmaceuticals Inc (FRA:I76) » Definitions » ROCE %

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IRWD:USA

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.

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