Arrowhead Pharmaceuticals Inc (ARWR)

Working capital 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
Total current assets	US$ in thousands	419,521	405,299	384,597	322,372	265,247
Total current liabilities	US$ in thousands	105,456	138,850	146,536	40,682	97,071
Working capital turnover		0.71	0.91	0.58	0.31	1.00

September 30, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $222,409K ÷ ($419,521K – $105,456K)
= 0.71

The working capital turnover ratio of Arrowhead Pharmaceuticals Inc. has shown fluctuating trends over the past five years. The ratio indicates the efficiency of the company in utilizing its working capital to generate sales revenue.

The decreasing trend from 2019 to 2020, where the ratio dropped from 1.00 to 0.31, suggests that the company's working capital was less effectively utilized in generating sales during that period. However, there seems to have been an improvement in 2021 and 2022, as the ratio increased to 0.58 and 0.91, respectively.

In 2023, the working capital turnover ratio decreased to 0.77, indicating a slight decrease in the company's ability to generate sales revenue with its working capital compared to the previous year. Further analysis of the company's working capital management and sales generation strategies would be necessary to fully understand the reasons behind these fluctuations.