Arrowhead Pharmaceuticals Inc (ARWR)

Quick ratio

		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	US$ in thousands	58,200	102,991	105,300	135,000	202,200	100,705	139,439	86,408	91,587	184,434	326,000	372,400	139,921	143,583	219,323	256,700	461,032	221,804	188,332	161,639
Short-term investments	US$ in thousands	162,064	292,700	346,400	346,046	299,582	268,391	277,057	315,487	364,557	310,083	316,738	330,734	251,418	256,929	67,709	50,959	40,969	36,900	48,567	56,561
Receivables	US$ in thousands	—	—	1,247	69,434	39,568	1,410	239	1,317	150	10,255	671	955	9,002	846	21,693	1,266	1,345	661	2,044	13,422
Total current liabilities	US$ in thousands	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	97,071	87,087	101,812
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

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($58,200K + $162,064K + $—K) ÷ $63,723K
= 3.46

Arrowhead Pharmaceuticals Inc.'s quick ratio has shown fluctuation over the past eight quarters. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets, excluding inventory.

In Q1 2024, the quick ratio was 3.73, indicating that Arrowhead Pharmaceuticals Inc. had $3.73 in liquid assets available to cover each dollar of its current liabilities. This ratio decreased from the previous quarter, Q4 2023, where it stood at 3.98.

Looking further back, Arrowhead Pharmaceuticals Inc. experienced a significant increase in its quick ratio in Q3 2023 to 6.69, demonstrating a strong ability to cover short-term obligations with liquid assets. This ratio was slightly lower in Q4 2022 at 2.92, indicating a lower level of liquidity compared to Q3 2023.

Overall, the quick ratio of Arrowhead Pharmaceuticals Inc. has shown variability over the quarters analyzed, indicating fluctuations in the company's liquidity position. An upward trend in the quick ratio generally reflects an improvement in liquidity, while a downward trend may raise concerns about the company's ability to cover its short-term obligations.