Arrowhead Pharmaceuticals Inc (ARWR)

Quick ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Cash	US$ in thousands	99,200	102,991	100,705	184,434	143,583
Short-term investments	US$ in thousands	578,276	292,700	268,391	310,083	256,929
Receivables	US$ in thousands	—	—	1,410	10,255	846
Total current liabilities	US$ in thousands	103,168	105,456	138,850	146,536	40,682
Quick ratio		6.57	3.75	2.67	3.44	9.87

September 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($99,200K + $578,276K + $—K) ÷ $103,168K
= 6.57

The quick ratio of Arrowhead Pharmaceuticals Inc has exhibited fluctuations over the past five years. The ratio was highest in 2020 at 9.87, indicating a strong ability to meet short-term obligations using only quick assets. In the subsequent years, the quick ratio decreased but remained above 1, demonstrating the company's liquidity levels were generally adequate. The ratio peaked again in 2024 at 6.57, suggesting a significant increase in the company's ability to cover current liabilities with quick assets. Overall, Arrowhead Pharmaceuticals Inc has maintained a healthy quick ratio, reflecting a solid financial position in terms of liquidity management.