Arrowhead Pharmaceuticals Inc (ARWR)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	166,263	225,258	245,998	267,743	278,338	243,231	249,939	263,418	144,424	138,288	107,638	89,123	79,841	87,993	123,653	138,974	163,593	168,796	136,758	94,788
Property, plant and equipment	US$ in thousands	333,411	290,262	231,369	185,228	147,314	110,297	71,904	54,888	52,303	48,675	47,786	39,400	33,730	30,881	30,390	29,363	26,435	23,215	17,075	13,378
Fixed asset turnover		0.50	0.78	1.06	1.45	1.89	2.21	3.48	4.80	2.76	2.84	2.25	2.26	2.37	2.85	4.07	4.73	6.19	7.27	8.01	7.09

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $166,263K ÷ $333,411K
= 0.50

Arrowhead Pharmaceuticals Inc.'s fixed asset turnover has shown a declining trend over the past few quarters. In Q1 2024, the fixed asset turnover ratio was 0.55, indicating that the company generated $0.55 in sales for every $1 invested in fixed assets during that quarter. This is a significant decrease from the previous quarter, where the ratio was 0.83.

The downward trend in fixed asset turnover could suggest inefficiencies in asset utilization or a decrease in the effectiveness of the company's fixed asset investments. It is important for Arrowhead Pharmaceuticals Inc. to investigate the reasons behind the declining ratio and evaluate its asset management strategies to improve efficiency and profitability.

The significant drop in fixed asset turnover from Q2 2022 to Q1 2023, where the ratio decreased from 4.80 to 1.89, is particularly concerning. This sharp decline could indicate a sudden decrease in sales relative to fixed asset investments during that period.

Overall, Arrowhead Pharmaceuticals Inc. should closely monitor its fixed asset turnover ratio and take appropriate actions to optimize its asset investments and improve operational efficiency in order to enhance overall financial performance.