Arrowhead Pharmaceuticals Inc (ARWR)

Inventory turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Cost of revenue	US$ in thousands	117,356	105,042	134,852	89,248	58,218
Inventory	US$ in thousands	—	—	-21,614	4,362	4,251
Inventory turnover		—	—	—	20.46	13.70

September 30, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $117,356K ÷ $—K
= —

Based on the data provided, Arrowhead Pharmaceuticals Inc's inventory turnover ratio for the fiscal years ending September 30, 2020 and 2021 was 13.70 and 20.46, respectively. The inventory turnover ratio measures how efficiently a company manages its inventory by indicating how many times during a period the company sells and replaces its inventory.

The increase in Arrowhead Pharmaceuticals Inc's inventory turnover from 2020 to 2021 suggests that the company was able to sell and replace its inventory at a faster pace in 2021 compared to 2020. This improvement indicates that the company may have managed its inventory more efficiently in 2021, possibly through better inventory management strategies, stronger sales performance, or effective supply chain management.

However, the lack of data for inventory turnover for the years 2022, 2023, and 2024 makes it challenging to provide a comprehensive trend analysis. It is important to monitor future inventory turnover ratios to assess the company's ongoing effectiveness in managing its inventory levels. A consistently increasing inventory turnover ratio over time would generally be viewed positively, as it suggests improved inventory management and potentially higher profitability.