Arrowhead Pharmaceuticals Inc (ARWR)

Working capital turnover

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	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	168,796	136,758	94,788
Total current assets	US$ in thousands	237,899	419,521	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	265,247	244,539	234,970
Total current liabilities	US$ in thousands	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	97,071	87,087	101,812
Working capital turnover		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	1.00	0.87	0.71

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $166,263K ÷ ($237,899K – $63,723K)
= 0.95

Arrowhead Pharmaceuticals Inc.'s working capital turnover ratio has shown fluctuations over the recent quarters. The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate revenue. A higher ratio indicates better efficiency in generating sales with the given working capital.

In Q1 2024, the working capital turnover was 1.04, marking an improvement compared to the previous quarters. This increase suggests that Arrowhead Pharmaceuticals was able to generate more revenue relative to its working capital investment.

In Q4 2023, the ratio dropped to 0.77, indicating a decrease in efficiency in using working capital to generate sales compared to the previous quarter. The ratio continued to decline in Q3 2023 (0.64) and Q2 2023 (0.56), indicating a potential inefficiency in utilizing working capital during these periods.

Q1 2023 saw a slight improvement with a ratio of 0.61, although it was still lower than the Q4 2022 ratio of 0.91. The ratio then reached 0.82 in Q3 2022 and peaked at 0.94 in Q2 2022 before the fluctuations started to occur in the subsequent quarters.

Overall, Arrowhead Pharmaceuticals Inc. should continue monitoring its working capital turnover ratio to ensure efficient utilization of working capital resources to drive revenue generation. Any significant deviations from the company's historical performance may warrant further investigation and adjustment in operational strategies.