Arrowhead Pharmaceuticals Inc (ARWR)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 6.57 | 4.52 | 8.03 | 3.46 | 3.75 | 6.45 | 6.32 | 4.44 | 2.67 | 3.25 | 2.90 | 3.33 | 3.44 | 3.29 | 4.21 | 15.95 | 9.87 | 7.22 | 5.79 | 6.83 |
| 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 |
Arrowhead Pharmaceuticals Inc has exhibited strong liquidity ratios over the past few quarters. The current ratio, which measures the company's ability to cover short-term liabilities with its current assets, has shown a consistently high trend, reaching as high as 8.31 in March 2024. This suggests that the company has ample current assets to meet its short-term obligations.
Similarly, the quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also demonstrates a healthy level of liquidity for Arrowhead Pharmaceuticals Inc. The quick ratio has remained above 2 in most quarters, with peaks exceeding 8 in March 2024 and 15.95 in December 2020, indicating a strong ability to meet short-term obligations without relying on inventory.
The cash ratio, which focuses solely on the ability to cover current liabilities with cash and cash equivalents, also reflects the company's robust liquidity position. With consistently high values above 2.5 in most quarters, Arrowhead Pharmaceuticals Inc appears to have a strong cash position relative to its short-term liabilities.
Overall, Arrowhead Pharmaceuticals Inc's liquidity ratios suggest a well-managed and financially stable company with the ability to meet its short-term obligations comfortably and efficiently.
Additional liquidity measure
| 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 conversion cycle | days | -38.19 | -91.53 | -29.36 | -15.64 | -131.05 | 9.34 | 95.85 | 49.59 | -5.91 | 2.68 | -10.19 | 4.38 | 5.48 | -13.91 | 12.87 | 56.14 | -13.25 | 64.19 | -79.70 | -97.05 |
Based on the data provided, the cash conversion cycle of Arrowhead Pharmaceuticals Inc has shown significant fluctuations over the various quarters.
The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A negative cash conversion cycle indicates that the company is able to collect cash from its sales before needing to pay its suppliers, which is generally a positive sign.
Arrowhead Pharmaceuticals Inc has experienced both positive and negative cash conversion cycles over the past quarters. For example, in Jun 2023, the company had a positive cash conversion cycle of 9.34 days, indicating efficient management in converting investments into cash. However, this trend reversed in the following quarter, with a significantly negative cash conversion cycle of -131.05 days in Sep 2023, suggesting challenges in managing cash flow efficiently.
Overall, the company's cash conversion cycle has been volatile, with periods of efficient cash management followed by periods of inefficiency. It is essential for Arrowhead Pharmaceuticals Inc to focus on streamlining its cash conversion cycle to ensure consistent and effective management of working capital in the future.