Arrowhead Pharmaceuticals Inc (ARWR)

Receivables turnover

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Revenue	US$ in thousands	222,409	243,231	138,287	87,992	168,796
Receivables	US$ in thousands	—	1,410	10,255	846	661
Receivables turnover		—	172.50	13.48	104.01	255.36

September 30, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $222,409K ÷ $—K
= —

The receivables turnover ratio measures a company's ability to efficiently collect its outstanding receivables. A higher ratio indicates a faster collection of receivables, which is generally favorable.

In the case of Arrowhead Pharmaceuticals Inc., the receivables turnover has fluctuated significantly over the past five years. In 2019, the ratio was 255.36, demonstrating an exceptionally high level of efficiency in collecting receivables. This was followed by a sharp decline to 104.01 in 2020 and a further decrease to 13.48 in 2021, indicating a significant slowdown in the collection of receivables. However, the ratio rebounded to 172.50 in 2022, suggesting improved efficiency in receivables collection compared to the previous year.

The absence of a specific value for 2023 makes it difficult to assess the most recent performance. However, the trend over the previous years indicates that Arrowhead Pharmaceuticals Inc. experienced significant fluctuations in its receivables turnover, which may reflect changes in its credit policies, customer payment behavior, or business operations.

Further analysis and comparison with industry benchmarks would be beneficial to understand the reasons behind these fluctuations and to evaluate the company's overall effectiveness in managing its receivables.