Arrowhead Pharmaceuticals Inc (ARWR)

Current ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Total current assets	US$ in thousands	419,521	405,299	384,597	322,372	265,247
Total current liabilities	US$ in thousands	105,456	138,850	146,536	40,682	97,071
Current ratio		3.98	2.92	2.62	7.92	2.73

September 30, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $419,521K ÷ $105,456K
= 3.98

The current ratio measures a company's ability to meet its short-term obligations with its short-term assets. Arrowhead Pharmaceuticals Inc.'s current ratio has shown variations over the past five years, reflecting changes in its liquidity position.

As of September 30, 2023, the current ratio stands at 3.98, indicating a significant increase from the previous year's 2.92. This suggests that the company's ability to cover its short-term liabilities with its current assets has improved. The substantial increase in the current ratio may be attributed to an increase in current assets relative to current liabilities.

Comparing this to the ratios from earlier years, a notable downtrend is observed from the exceptionally high ratio of 7.92 in 2020, indicating a potential decrease in the company's short-term liquidity position. However, the current ratio has generally remained above 2.0 over the past five years, indicating a consistently strong ability to meet short-term obligations.

Overall, the current ratio analysis suggests that Arrowhead Pharmaceuticals Inc. has demonstrated fluctuations in its liquidity position over the years, but has maintained a relatively healthy ability to cover short-term liabilities with its current assets.