Arrowhead Pharmaceuticals Inc (ARWR)

Fixed asset turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Revenue	US$ in thousands	3,471	222,409	243,231	138,287	87,992
Property, plant and equipment	US$ in thousands	386,032	290,262	110,297	48,675	30,881
Fixed asset turnover		0.01	0.77	2.21	2.84	2.85

September 30, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,471K ÷ $386,032K
= 0.01

The fixed asset turnover ratio for Arrowhead Pharmaceuticals Inc has shown a significant decline over the past five years. In 2020, the ratio was relatively stable at 2.85, indicating that the company generated $2.85 in revenue for every dollar invested in fixed assets. However, this ratio dropped to 2.84 in 2021 and further declined to 2.21 in 2022, signaling a decrease in efficiency in utilizing fixed assets to generate revenue.

The trend of decreasing fixed asset turnover continued in 2023 with a ratio of 0.77, suggesting a substantial decline in revenue generation relative to fixed asset investment. This was followed by a sharp decrease in 2024, with a fixed asset turnover ratio of 0.01, indicating a significant inefficiency in utilizing fixed assets to generate revenue during that period.

Overall, the decreasing trend in fixed asset turnover for Arrowhead Pharmaceuticals Inc raises concerns about the company's ability to efficiently utilize its fixed assets to generate revenue in recent years. Further analysis and investigation into the underlying reasons for this decline may be necessary to improve the company's operational efficiency and financial performance.