Arrowhead Pharmaceuticals Inc (ARWR)
Profitability ratios
Return on sales
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 52.77% | 44.56% | 35.46% | 33.84% | 81.64% |
| Operating profit margin | -92.17% | -73.39% | -107.77% | -105.87% | 36.25% |
| Pretax margin | -91.04% | -70.83% | -101.85% | -96.09% | 40.37% |
| Net profit margin | -92.30% | -72.39% | -101.85% | -96.09% | 40.27% |
The profitability ratios of Arrowhead Pharmaceuticals Inc. reflect the company's ability to generate profits from its operations. The gross profit margin has remained consistently high at 100% over the past five years, indicating efficient production and pricing strategies.
However, the operating profit margin, which reflects the company's ability to control operating expenses, has been negative, with a notable decline from -73.39% in 2022 to -85.16% in 2023. This suggests a significant increase in operating expenses relative to revenues, leading to sizable operating losses.
Similarly, the pretax margin and net profit margin have also been negative over the past five years, with 2023 showing a substantial decrease compared to 2022. This indicates that the company's overall profitability and ability to generate returns for its investors have been under significant pressure.
In summary, while Arrowhead Pharmaceuticals has maintained a strong gross profit margin, the company has struggled with operating profitability and bottom-line results, as evidenced by negative operating, pretax, and net profit margins. This indicates the need for the company to address its cost structure and operational efficiency to improve its overall profitability.
Return on investment
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -26.78% | -25.80% | -20.99% | -17.83% | 17.49% |
| Return on assets (ROA) | -26.81% | -25.44% | -19.83% | -16.18% | 19.43% |
| Return on total capital | -67.87% | -43.23% | -34.45% | -20.17% | 25.02% |
| Return on equity (ROE) | -75.65% | -44.18% | -34.45% | -18.31% | 27.79% |
Arrowhead Pharmaceuticals Inc.'s profitability ratios paint a concerning picture over the past five years. The operating return on assets (Operating ROA) has been consistently negative, with a notable decline from -17.83% in 2020 to -26.78% in 2023. This indicates that the company has been unable to generate positive operating income relative to its total assets, and the situation has worsened over time.
Similarly, the return on assets (ROA) has displayed a negative trend, reaching -26.81% in 2023, signifying declining profitability relative to its total assets. The return on total capital has also been extremely negative, with a notable decrease from -20.17% in 2020 to a staggering -75.55% in 2023, indicating significant losses relative to the total invested capital.
Furthermore, the return on equity (ROE) has followed a similar downward trajectory, plummeting to -75.65% in 2023 from 27.79% in 2019, indicating a substantial decrease in the company's ability to generate profit from shareholders' equity.
Overall, Arrowhead Pharmaceuticals Inc.'s profitability ratios reflect a deteriorating financial performance and raise concerns about the company's ability to generate returns for its assets, capital, and equity holders.