Arrowhead Pharmaceuticals Inc (ARWR)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	108,849	105,878	105,939	104,091	99,897	106,154	115,524	126,570	130,464	135,680	120,973	103,052	86,134	62,271	54,611	54,616	56,160	51,470	45,530	34,543
Inventory	US$ in thousands	—	—	—	—	—	10,053	9,935	-64,756	-21,614	6,761	6,622	5,199	4,362	7,276	6,639	7,069	4,251	4,096	3,062	2,733
Inventory turnover		—	—	—	—	—	10.56	11.63	—	—	20.07	18.27	19.82	19.75	8.56	8.23	7.73	13.21	12.57	14.87	12.64

September 30, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $108,849K ÷ $—K
= —

The inventory turnover ratio indicates how efficiently a company manages its inventory by measuring the number of times inventory is sold and replaced within a specific period. Looking at the inventory turnover data for Arrowhead Pharmaceuticals Inc, we see fluctuations in the ratio over the past few quarters.

In the most recent quarter ending September 30, 2023, the inventory turnover ratio was 10.56, which suggests that the company sold and replaced its inventory approximately 10.56 times during that quarter. This indicates a moderate level of efficiency in managing inventory.

Comparing this to previous quarters, we observe a significant improvement in inventory turnover from the March 31, 2023 quarter (11.63) to the September 30, 2023 quarter (10.56). This improvement could be a positive sign of improved inventory management or increased sales efficiency during that period.

However, it is important to note that the inventory turnover ratio for Arrowhead Pharmaceuticals Inc has fluctuated over the quarters, with some quarters showing higher ratios (e.g., 20.07 in June 30, 2022) and others showing lower ratios (e.g., 7.73 in March 31, 2021). These fluctuations may indicate variations in sales volume, production efficiency, or inventory management practices within the company.

Overall, a higher inventory turnover ratio is generally preferable as it indicates faster sales and efficient inventory management. Arrowhead Pharmaceuticals Inc should continue monitoring and striving to improve its inventory turnover ratio to ensure optimal utilization of its inventory resources.