Arrowhead Pharmaceuticals Inc (ARWR)

Current ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
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
Current ratio		6.74	3.95	2.92	2.62	7.92

September 30, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $695,471K ÷ $103,168K
= 6.74

The current ratio of Arrowhead Pharmaceuticals Inc has exhibited fluctuating trends over the past five years, ranging from 2.62 in 2021 to 6.74 in 2024. A current ratio above 1 indicates that the company has more current assets than current liabilities available to cover its short-term obligations.

The company's current ratio peaked at 7.92 in 2020, indicating a strong ability to meet its short-term liabilities. This was followed by a decline in 2021, possibly due to changes in the composition of current assets and liabilities.

However, the current ratio rebounded significantly in 2024, reaching 6.74, showcasing a substantial increase in liquidity and ability to cover short-term obligations. This improvement suggests that the company has enhanced its current asset base relative to its current liabilities, potentially due to increased cash reserves or other liquid assets.

Overall, the recent upward trend in Arrowhead Pharmaceuticals Inc's current ratio indicates improved short-term liquidity and financial stability, which may enhance its ability to meet operational and financial commitments in the near term.