Arrowhead Pharmaceuticals Inc (ARWR)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | — | — | — | — | — | 197.27 | 3.86 | 7.03 | 172.50 | 1,045.77 | 200.01 | 962.83 | 13.48 | 160.41 | 93.32 | 8.87 | 104.01 | 5.70 | 109.77 | 121.63 |
| 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 |
| Working capital turnover | 0.01 | 0.04 | 0.05 | 0.95 | 0.72 | 0.62 | 0.55 | 0.61 | 0.91 | 0.82 | 0.94 | 0.72 | 0.58 | 0.33 | 0.21 | 0.27 | 0.31 | 0.45 | 0.53 | 0.38 |
Based on the activity ratios provided for Arrowhead Pharmaceuticals Inc, we can observe the following trends:
1. Inventory Turnover: The inventory turnover ratio measures how efficiently a company is managing its inventory. Arrowhead Pharmaceuticals Inc's inventory turnover has fluctuated over the periods provided, with values ranging from 7.73 to 20.07. The company has shown variations in managing its inventory efficiently during different periods.
2. Receivables Turnover: The receivables turnover ratio indicates how efficiently a company is collecting payments from its customers. Arrowhead Pharmaceuticals Inc's receivables turnover has also fluctuated significantly, with values ranging from 1.70 to 1,045.77. These fluctuations could be due to changes in the company's credit policies or sales patterns.
3. Payables Turnover: The payables turnover ratio measures how quickly a company is paying its suppliers. Arrowhead Pharmaceuticals Inc's payables turnover has shown variability over time, with values ranging from 2.79 to 159.01. A higher payables turnover ratio could indicate that the company is managing its payables efficiently.
4. Working Capital Turnover: The working capital turnover ratio evaluates how effectively a company is utilizing its working capital to generate sales. Arrowhead Pharmaceuticals Inc's working capital turnover has ranged from 0.01 to 0.95, reflecting differing levels of efficiency in utilizing working capital across periods.
Overall, Arrowhead Pharmaceuticals Inc's activity ratios demonstrate fluctuating efficiency levels in managing its inventory, accounts receivable, accounts payable, and working capital. Further analysis and comparison with industry benchmarks may provide more insights into the company's operational performance and efficiency.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | 34.57 | 31.39 | — | — | 18.19 | 19.98 | 18.41 | 18.48 | 42.65 | 44.37 | 47.24 | 27.63 | 29.05 | 24.55 | 28.88 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | 1.85 | 94.66 | 51.89 | 2.12 | 0.35 | 1.82 | 0.38 | 27.07 | 2.28 | 3.91 | 41.15 | 3.51 | 64.03 | 3.33 | 3.00 |
| Number of days of payables | days | 38.19 | 91.53 | 29.36 | 15.64 | 131.05 | 27.07 | 30.19 | 2.30 | 8.02 | 15.86 | 31.99 | 14.41 | 40.07 | 58.83 | 35.42 | 32.26 | 44.38 | 28.89 | 107.57 | 128.93 |
Days of inventory on hand (DOH) measures how many days it takes for a company to sell its inventory. A lower DOH indicates efficient inventory management. Arrowhead Pharmaceuticals Inc's DOH has shown variability over time, with a recent increase from around 18 days to over 40 days.
Days of sales outstanding (DSO) reflects how long it takes for a company to collect payment after making a sale. A lower DSO suggests efficient accounts receivable collection. Arrowhead Pharmaceuticals Inc's DSO has fluctuated significantly over the periods, ranging from less than a day to around 95 days, potentially highlighting issues with collection efficiency.
Number of days of payables indicates the number of days a company takes to pay its suppliers. A longer period can indicate favorable terms but may also suggest liquidity issues. Arrowhead Pharmaceuticals Inc's days of payables have shown variation, with some periods having longer payment terms, possibly impacting cash flow and relationships with suppliers.
Overall, Arrowhead Pharmaceuticals Inc's activity ratios reflect fluctuations in inventory management, accounts receivable collection, and payment terms to suppliers, signaling potential areas for improvement in operational efficiency and working capital management.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Total asset turnover | 0.00 | 0.02 | 0.03 | 0.27 | 0.29 | 0.31 | 0.30 | 0.31 | 0.35 | 0.33 | 0.37 | 0.23 | 0.19 | 0.15 | 0.12 | 0.16 | 0.17 | 0.22 | 0.25 | 0.28 |
Arrowhead Pharmaceuticals Inc's long-term activity ratios demonstrate mixed performance over the analysis period. The fixed asset turnover ratio, which indicates the efficiency of utilizing fixed assets to generate sales, shows a fluctuating trend, with a significant increase from 0.01 in September 2024 to 6.19 in March 2020, followed by a gradual decline to 4.73 in September 2022 and further fluctuation thereafter.
The total asset turnover ratio, reflecting the overall efficiency of asset utilization to generate sales, also shows variability, ranging from 0.00 to 0.37 during the period under review. Notably, there is a moderate improvement from 0.12 in March 2021 to 0.37 in June 2022, followed by a slight decline to 0.22 by September 2022 and subsequent fluctuations.
A low fixed asset turnover ratio may indicate underutilization of fixed assets, while a low total asset turnover ratio may suggest inefficiencies in asset utilization or declining sales relative to total assets. It is essential for Arrowhead Pharmaceuticals Inc to closely monitor these ratios to ensure effective management of assets and optimize operational performance for long-term sustainability and growth.