Arrowhead Pharmaceuticals Inc (ARWR)

Gross profit margin

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Gross profit (ttm)	US$ in thousands	-117,989	-104,023	-93,417	56,885	125,361	139,844	152,219	151,768	112,767	114,259	142,445	41,372	52,154	61,408	50,553	41,266	47,873	83,533	104,793	140,399
Revenue (ttm)	US$ in thousands	3,551	14,386	25,053	166,263	225,258	245,998	267,743	278,338	243,231	249,939	263,418	144,424	138,288	107,638	89,123	79,841	87,993	123,653	138,974	163,593
Gross profit margin		-3,322.70%	-723.08%	-372.88%	34.21%	55.65%	56.85%	56.85%	54.53%	46.36%	45.71%	54.08%	28.65%	37.71%	57.05%	56.72%	51.69%	54.41%	67.55%	75.40%	85.82%

September 30, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $-117,989K ÷ $3,551K
= -3,322.70%

Arrowhead Pharmaceuticals Inc's gross profit margin has fluctuated significantly over the past few quarters. The gross profit margin was negative in the recent quarters, indicating that the company's cost of goods sold exceeded its revenue from sales. This is a concerning trend as it may imply inefficiencies in production or pricing strategies.

However, looking at historical data, Arrowhead Pharmaceuticals has demonstrated higher gross profit margins in previous quarters, with figures ranging from 50% to over 85%. This suggests that the company has the potential to generate healthy profits from its core operations when conditions are favorable.

It is essential for Arrowhead Pharmaceuticals to address the recent downturn in gross profit margin and identify the root causes behind the negative figures. Management should focus on cost control measures, pricing strategies, and revenue optimization to improve profitability and ensure long-term sustainability.