Arrowhead Pharmaceuticals Inc (ARWR)

Working capital turnover

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	3,551	14,386	25,053	166,263	225,258	245,998	267,743	278,338	243,231	249,939	263,418	144,424	138,288	107,638	89,123	79,841	87,993	123,653	138,974	163,593
Total current assets	US$ in thousands	695,471	450,062	541,650	237,899	416,472	470,165	574,810	574,999	405,299	432,388	417,630	338,278	384,597	525,955	586,757	323,716	322,372	315,233	314,474	507,614
Total current liabilities	US$ in thousands	103,168	96,714	65,175	63,723	105,456	70,227	87,151	122,009	138,850	128,212	138,857	137,032	146,536	195,434	167,188	25,094	40,682	42,783	53,333	73,695
Working capital turnover		0.01	0.04	0.05	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

September 30, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,551K ÷ ($695,471K – $103,168K)
= 0.01

Arrowhead Pharmaceuticals Inc's working capital turnover has shown some fluctuations over the past few quarters. The working capital turnover ratio measures the efficiency of a company in utilizing its working capital to generate sales revenue.

The working capital turnover for Arrowhead Pharmaceuticals Inc has ranged from a low of 0.01 to a high of 0.95 over the past eight quarters. A higher working capital turnover ratio indicates that the company is able to generate more sales revenue with less working capital, which is generally viewed as a positive sign of operational efficiency.

Arrowhead Pharmaceuticals Inc's working capital turnover has generally been trending upwards from 0.21 in March 2021 to 0.95 in December 2023, before decreasing slightly to 0.01 in September 2024. This may be indicative of changes in the company's working capital management practices or operational efficiency.

It is important for Arrowhead Pharmaceuticals Inc to continue monitoring and managing its working capital effectively to ensure optimal utilization of resources and maximize the generation of sales revenue. Fluctuations in the working capital turnover ratio should be further analyzed to identify any underlying causes and implement appropriate strategies for improvement.