Arrowhead Pharmaceuticals Inc (ARWR)

Current 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
Total current assets	US$ in thousands	695,471	450,062	541,650	237,899	416,472	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
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
Current ratio		6.74	4.65	8.31	3.73	3.95	6.69	6.60	4.71	2.92	3.37	3.01	2.47	2.62	2.69	3.51	12.90	7.92	7.37	5.90	6.89

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 fluctuated over the past several quarters. As of September 30, 2024, the current ratio stands at 6.74, indicating a strong liquidity position with more than enough current assets to cover its current liabilities. This represents a significant improvement compared to the past four quarters, where ratios ranged from 4.65 to 8.31.

It is important to note that a high current ratio generally suggests that the company is well equipped to meet its short-term obligations. However, a very high current ratio could also indicate that the company is not efficiently utilizing its current assets. Conversely, a low current ratio may signal liquidity issues and potential difficulties in meeting short-term obligations.

Arrowhead Pharmaceuticals Inc should continue to monitor its current ratio and ensure that it maintains a balance between liquidity and efficiency in managing its current assets and liabilities to support sustainable growth and financial stability.