Arrowhead Pharmaceuticals Inc (ARWR)
Profitability ratios
Return on sales
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | -3,281.04% | 52.77% | 44.56% | 35.46% | 33.84% |
| Operating profit margin | -17,317.20% | -92.17% | -73.39% | -107.77% | -105.87% |
| Pretax margin | -17,351.20% | -91.04% | -70.83% | -101.85% | -96.09% |
| Net profit margin | -17,271.48% | -92.30% | -72.39% | -101.85% | -96.09% |
Arrowhead Pharmaceuticals Inc exhibited a significant deterioration in profitability ratios over the past five years, with negative margins across the board. The gross profit margin fluctuated, with a sharp decline from positive levels in 2020 to a substantial negative margin in 2024. The operating profit margin, pretax margin, and net profit margin all showed consistent negative trends, reaching their lowest points in 2024. The company struggled to generate profits from its core operations, reflected in the deepening negative margins. These declining profitability ratios indicate challenges in controlling costs and generating sufficient revenue to cover expenses, highlighting potential issues with the company's business model or operational efficiency.
Return on investment
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -52.74% | -26.78% | -25.80% | -20.99% | -17.83% |
| Return on assets (ROA) | -52.60% | -26.81% | -25.44% | -19.83% | -16.18% |
| Return on total capital | -103.88% | -67.87% | -43.23% | -34.45% | -20.17% |
| Return on equity (ROE) | -323.27% | -75.65% | -44.18% | -34.45% | -18.31% |
Arrowhead Pharmaceuticals Inc's profitability ratios show a concerning trend over the past five years. The operating return on assets (Operating ROA) has deteriorated from -17.83% in 2020 to -52.74% in 2024, indicating a significant decrease in the company's ability to generate operating income relative to its total assets.
Similarly, the return on assets (ROA) has also worsened over the years, dropping from -16.18% in 2020 to -52.60% in 2024. This ratio reflects the overall profitability of the company's assets, and the declining trend suggests a persistent struggle in generating profits from its assets.
The return on total capital paints a bleak picture as well, with the ratio plunging from -20.17% in 2020 to -103.88% in 2024. This metric indicates how effectively the company is utilizing all its capital to generate profits, and the consistently negative values highlight a severe inefficiency in capital utilization.
Moreover, the return on equity (ROE) has experienced a drastic decline, from -18.31% in 2020 to -323.27% in 2024. The negative ROE indicates that the company's net income is insufficient to cover its shareholder equity, signaling financial distress and an inability to generate positive returns for its equity holders.
Overall, Arrowhead Pharmaceuticals Inc's profitability ratios demonstrate a concerning downward trajectory, raising red flags about its financial health and operational performance. Investors and stakeholders may be alarmed by the company's persistent struggles to generate profits and effectively leverage its assets and capital.