Arrowhead Pharmaceuticals Inc (ARWR)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	99,200	69,400	127,700	58,200	102,991	105,300	135,000	202,200	100,705	139,439	86,408	91,587	184,434	326,000	372,400	139,921	143,583	219,323	256,700	461,032
Short-term investments	US$ in thousands	578,276	367,300	395,410	162,064	292,700	346,400	346,046	299,582	268,391	277,057	315,487	364,557	310,083	316,738	330,734	251,418	256,929	67,709	50,959	40,969
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
Cash ratio		6.57	4.52	8.03	3.46	3.75	6.43	5.52	4.11	2.66	3.25	2.89	3.33	3.37	3.29	4.21	15.59	9.84	6.71	5.77	6.81

September 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($99,200K + $578,276K) ÷ $103,168K
= 6.57

The cash ratio of Arrowhead Pharmaceuticals Inc has shown fluctuations over the past few quarters, indicating variations in the company's ability to cover its short-term liabilities with its cash holdings. The ratio reached its highest point of 15.59 in December 2020, indicating a strong ability to meet its current obligations with cash on hand. However, it decreased significantly in the following quarters, reaching a low of 2.66 in September 2022.

Subsequently, the cash ratio improved and peaked at 8.03 in March 2024, suggesting a better liquidity position. This positive trend continued to the most recent data point of 6.57 in September 2024. Overall, the company seems to have strengthened its ability to cover short-term liabilities with cash reserves over the analyzed period, although there have been fluctuations in the ratio. It is essential for Arrowhead Pharmaceuticals to maintain a healthy cash ratio to ensure financial stability and meet its financial obligations effectively.