Arrowhead Pharmaceuticals Inc (ARWR)

Payables 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
Payables	US$ in thousands	11,388	35,866	2,868	9,457	6,829
Payables turnover		10.31	2.93	47.02	9.44	8.53

September 30, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $117,356K ÷ $11,388K
= 10.31

The payables turnover ratio of Arrowhead Pharmaceuticals Inc has fluctuated over the past five years. In Sep 30, 2024, the company's payables turnover ratio was 10.31, indicating that the company converted its accounts payable into cash or inventory 10.31 times during the year. This represents a significant improvement compared to the previous year's ratio of 2.93.

In Sep 30, 2022, the payables turnover ratio spiked to 47.02, suggesting a very efficient management of accounts payable during that period. This was a substantial increase from the previous year's ratio of 9.44.

However, in Sep 30, 2021 and Sep 30, 2020, the payables turnover ratios were 9.44 and 8.53 respectively, remaining relatively stable compared to previous years but lower than the exceptional performance in 2022.

Overall, fluctuations in Arrowhead Pharmaceuticals Inc's payables turnover ratio indicate varying levels of efficiency in managing its accounts payable over the past five years, with improvements in recent years showcasing better management of payables.