Arrowhead Pharmaceuticals Inc (ARWR)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 3.73 | 3.98 | 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 | 2.73 | 2.81 | 2.31 |
| Quick ratio | 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 | 2.67 | 2.74 | 2.27 |
| 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 |
Arrowhead Pharmaceuticals Inc. has demonstrated consistently strong liquidity ratios over the past eight quarters. The current ratio, which measures the company's ability to cover short-term liabilities with its current assets, has generally been above 3, indicating a healthy liquidity position. Similarly, the quick ratio, which provides a more stringent assessment by excluding inventory from current assets, also reflects strong liquidity levels above 3. Both ratios have shown stability and consistency over the period analyzed.
Furthermore, the cash ratio, which focuses solely on the company's ability to cover immediate liabilities with its cash and cash equivalents, has remained robust and above 3 in most quarters, indicating a strong ability to service short-term obligations using readily available cash resources.
Overall, Arrowhead Pharmaceuticals Inc.'s liquidity ratios suggest that the company has a solid financial standing and is well-positioned to meet its short-term financial obligations effectively.
Additional liquidity measure
| 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 conversion cycle | days | -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 | -51.87 | -1.95 | 19.04 |
The cash conversion cycle for Arrowhead Pharmaceuticals Inc. has varied over the past few quarters. In the most recent quarter, Q1 2024 and the preceding quarter Q4 2023, the company recorded a cash conversion cycle of 0.00 days, indicating that the company was able to efficiently convert its investments in inventory and accounts receivable into cash.
In Q3 2023, the cash conversion cycle increased to 1.78 days, showing a slight delay in the conversion of investments to cash compared to the previous quarters. However, in Q2 2023, the cash conversion cycle significantly increased to 92.90 days, reflecting a substantial delay in the conversion process potentially due to operational inefficiencies or changes in the company's business model.
Looking further back, in Q1 2023 and Q4 2022, Arrowhead Pharmaceuticals Inc. managed to keep the cash conversion cycle relatively low at 51.89 days and 2.12 days respectively, indicating efficient working capital management. In Q3 2022 and Q2 2022, the company also maintained low cash conversion cycles of 0.35 days and 1.82 days respectively.
Overall, while the company has shown periods of efficient cash conversion cycles, there have been instances of significant delays. Arrowhead Pharmaceuticals Inc. should continue to monitor and manage its working capital effectively to ensure optimal cash flow and liquidity in the future.