Arrowhead Pharmaceuticals Inc (ARWR)

Working capital 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
Total current assets	US$ in thousands	695,471	416,472	405,299	384,597	322,372
Total current liabilities	US$ in thousands	103,168	105,456	138,850	146,536	40,682
Working capital turnover		0.01	0.72	0.91	0.58	0.31

September 30, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,471K ÷ ($695,471K – $103,168K)
= 0.01

Arrowhead Pharmaceuticals Inc's working capital turnover has fluctuated over the past five years, with a significant decrease from 0.91 in 2022 to 0.01 in 2024. This indicates a substantial decline in the efficiency of the company in utilizing its working capital to generate revenue.

A working capital turnover of 0.01 in 2024 suggests that Arrowhead Pharmaceuticals Inc is generating only one cent of revenue for every dollar of working capital invested. This indicates that the company may be facing challenges in efficiently managing its current assets and liabilities to support its operations.

It is important for Arrowhead Pharmaceuticals Inc to closely monitor and improve its working capital turnover in order to enhance operational efficiency, optimize resource utilization, and ultimately improve overall financial performance.