Arrowhead Pharmaceuticals Inc (ARWR)

Activity ratios

Short-term

Turnover ratios

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 Sep 30, 2019 Jun 30, 2019 Mar 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 8.94 6.33 14.65
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 5.70 109.77 121.63 255.36 66.91 7.06
Payables turnover 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 3.88 5.61 6.34
Working capital turnover 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 1.00 0.87 0.71

Inventory turnover for Arrowhead Pharmaceuticals Inc. is not provided in the table, indicating a lack of specific data on how quickly the company is selling its inventory within the given periods.

Receivables turnover reveals how efficiently the company collects outstanding receivables from customers. The sharp decline in Q4 2022 to Q1 2023 suggests a rapid improvement in collecting payments, followed by a consistent performance in Q2 and Q3 2023. However, the drastic drop in Q4 2023 indicates potential issues with receivables management that need further investigation.

Payables turnover remains consistently at 0.00 in all periods, indicating that Arrowhead Pharmaceuticals Inc. is not paying its suppliers within the timeframe captured in the data. Further analysis is required to understand the implications of this.

Working capital turnover measures how well the company is utilizing its working capital to generate revenues. The figures show fluctuation over the periods, with Q4 2022 and Q3 2023 displaying the highest turnover rates. This indicates varying levels of efficiency in utilizing working capital resources to generate sales and highlights the need for closer monitoring of working capital management practices.

Average number of days

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 Sep 30, 2019 Jun 30, 2019 Mar 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 40.82 57.66 24.91
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 1.43 5.46 51.68
Number of days of payables days 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 94.12 65.06 57.56

Days of inventory on hand (DOH) and number of days of payables data are missing in the table, so we will focus on Days of Sales Outstanding (DSO) to analyze Arrowhead Pharmaceuticals Inc.'s activity ratios.

DSO measures how quickly a company collects its accounts receivable. A lower DSO is generally favorable as it indicates faster cash conversion and efficient credit management.

Looking at the quarterly trend:
- Q2 2023 had a considerably high DSO of 92.90 days, which may suggest delayed collections or credit management issues.
- Q1 2023 and Q3 2022 also had relatively high DSO figures of 51.89 days and 1.78 days respectively, which might indicate a pattern of slower collections during these periods.
- Q4 2022, Q2 2022, and Q1 2022 had very low DSO figures, which could imply efficient accounts receivable management and prompt collection practices.

Overall, Arrowhead Pharmaceuticals Inc. should focus on analyzing and improving their credit policies and collections processes to reduce DSO figures and enhance cash flows. Additionally, comparing the DSO figures with industry benchmarks can provide further insights into the company's efficiency in managing its accounts receivable.

Long-term

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 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Fixed asset turnover 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 7.27 8.01 7.09
Total asset turnover 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 0.48 0.41 0.28

Arrowhead Pharmaceuticals Inc.'s long-term activity ratios, focusing on fixed asset turnover and total asset turnover, exhibit fluctuating trends over the quarters analyzed. The fixed asset turnover ratio has declined steadily from 4.80 in Q2 2022 to 0.55 in Q1 2024, indicating that the company is generating less revenue from its fixed assets over time. This may suggest that Arrowhead Pharmaceuticals Inc. is not effectively utilizing its fixed assets to generate sales.

In contrast, the total asset turnover ratio has shown relatively stable performance, hovering around 0.30 over the quarters. Despite minor fluctuations, the ratio has not displayed a clear trend. This indicates that Arrowhead Pharmaceuticals Inc. is generating a consistent level of sales relative to its total assets.

Overall, the declining trend in fixed asset turnover and the stable performance of total asset turnover suggest that Arrowhead Pharmaceuticals Inc. may need to assess its use of fixed assets to enhance operational efficiency and optimize asset utilization for revenue generation in the long term.