Arrowhead Pharmaceuticals Inc (ARWR)

Receivables turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Revenue	US$ in thousands	3,471	222,409	243,231	138,287	87,992
Receivables	US$ in thousands	—	—	1,410	10,255	846
Receivables turnover		—	—	172.50	13.48	104.01

September 30, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $3,471K ÷ $—K
= —

The receivables turnover ratio for Arrowhead Pharmaceuticals Inc has shown varying trends over the past five years. In 2020, the ratio was 104.01 times, indicating that the company collected its accounts receivable approximately 104 times during the year. This high turnover rate suggests efficient management of accounts receivable and effective collection practices.

In 2021, there was a significant decrease in the receivables turnover ratio to 13.48 times, which may indicate a slowdown in the collection of receivables compared to the previous year. This could be a cause for concern as a lower turnover rate may imply potential challenges in collecting outstanding payments from customers.

However, in 2022, there was a substantial increase in the receivables turnover ratio to 172.50 times, indicating a significant improvement in the collection efficiency of accounts receivable. This sharp increase suggests that the company may have implemented more effective credit policies or improved its collection processes.

Unfortunately, the data for 2023 and 2024 is not provided, so it is difficult to assess the trend in receivables turnover for those years. Analyzing the receivables turnover ratio in conjunction with other financial metrics and industry benchmarks would provide a more comprehensive understanding of Arrowhead Pharmaceuticals Inc's efficiency in managing its accounts receivable.