Arrowhead Pharmaceuticals Inc (ARWR)

Fixed asset turnover

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	3,551	14,386	25,053	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
Property, plant and equipment	US$ in thousands	386,032	375,911	359,252	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
Fixed asset turnover		0.01	0.04	0.07	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

September 30, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,551K ÷ $386,032K
= 0.01

The fixed asset turnover ratio for Arrowhead Pharmaceuticals Inc has exhibited fluctuations over the past several quarters. The ratio has shown an increasing trend from 0.01 in September 2020 to a peak of 6.19 in March 2022, indicating a significant improvement in the utilization of fixed assets to generate sales during this period.

However, there was a notable decline in the fixed asset turnover ratio in the subsequent quarters, with the ratio dropping to 0.50 in December 2023. This suggests a potential decrease in the efficiency of utilizing fixed assets to generate revenue during that period.

The ratio recovered in the following quarters, reaching 0.78 in March 2024 and steadily increasing to 0.07 in June 2024, and further to 0.04 in September 2024. Despite this improvement, the ratio remains below the previous peak levels observed in early 2022.

Overall, the analysis of Arrowhead Pharmaceuticals Inc's fixed asset turnover ratio indicates variability in the efficiency of using fixed assets to generate sales over the periods examined. Continued monitoring of this ratio will be important to assess the company's ability to optimize the utilization of fixed assets in generating revenue.