Arrowhead Pharmaceuticals Inc (ARWR)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	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	221,804	188,332	161,639
Short-term investments	US$ in thousands	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	36,900	48,567	56,561
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
Cash ratio		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	2.67	2.72	2.14

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($58,200K + $162,064K) ÷ $63,723K
= 3.46

The cash ratio of Arrowhead Pharmaceuticals Inc. has shown fluctuations over the past eight quarters, ranging from 2.91 to 6.68. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a better ability to cover short-term obligations.

In Q3 2023, Arrowhead Pharmaceuticals had the highest cash ratio of 6.68, suggesting a strong ability to meet its short-term obligations with cash on hand. However, this ratio decreased in subsequent quarters, reaching a low of 2.91 in Q4 2022.

Overall, Arrowhead Pharmaceuticals maintained a relatively healthy cash position across the quarters, with the cash ratio consistently above 3.0. This indicates that the company has sufficient liquid assets to cover its short-term liabilities and implies a lower risk of liquidity issues. However, it is worth noting the fluctuations in the cash ratio, which may require further investigation into the company's cash management practices and short-term financial health.