Arrowhead Pharmaceuticals Inc (ARWR)

Payables 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
Payables	US$ in thousands	11,388	26,550	8,521	4,460	35,866	7,874	9,556	796	2,868	5,894	10,603	4,068	9,457	10,037	5,299	4,827	6,829	4,074	13,418	12,202
Payables turnover		9.56	3.99	12.43	23.34	2.79	13.48	12.09	159.01	45.49	23.02	11.41	25.33	9.11	6.20	10.31	11.31	8.22	12.63	3.39	2.83

September 30, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $108,849K ÷ $11,388K
= 9.56

Arrowhead Pharmaceuticals Inc's payables turnover has shown fluctuations over the past years, ranging from as low as 2.79 to as high as 159.01. The payables turnover ratio measures how many times a company pays its average accounts payable balance during a period. A higher payables turnover ratio indicates that the company is more efficient in paying its suppliers.

In the most recent period, the payables turnover ratio was 9.56, which indicates that Arrowhead Pharmaceuticals Inc paid its accounts payable approximately 9.56 times during the period. This suggests that the company is managing its payables effectively and is able to meet its payment obligations in a timely manner.

Looking at the trend over the past quarters, there have been significant fluctuations in the payables turnover ratio. For example, there was a notable increase in the ratio in December 2022 to 159.01, which may have been influenced by specific factors impacting the company's payables management during that period.

Overall, a high payables turnover ratio can be a positive sign of efficient working capital management, while a low ratio may indicate potential cash flow issues or delays in payment processing. It is important for Arrowhead Pharmaceuticals Inc to monitor its payables turnover ratio consistently to ensure effective management of its accounts payable.