Arrowhead Pharmaceuticals Inc (ARWR)

Net profit margin

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Net income	US$ in thousands	-205,275	-176,063	-140,848	-84,553	67,975
Revenue	US$ in thousands	222,409	243,231	138,287	87,992	168,796
Net profit margin		-92.30%	-72.39%	-101.85%	-96.09%	40.27%

September 30, 2023 calculation

Net profit margin = Net income ÷ Revenue
= $-205,275K ÷ $222,409K
= -92.30%

The net profit margin of Arrowhead Pharmaceuticals Inc. has been fluctuating over the past five years. In 2019, the company reported a net profit margin of 40.27%, indicating that for every dollar of sales, the company generated approximately 40 cents in net profit. However, the profitability took a significant downturn in the subsequent years, with negative net profit margins recorded from 2020 to 2023.

Notably, the net profit margins for 2021 and 2023 were particularly concerning at -101.85% and -85.27% respectively, indicating that the company's expenses exceeded its revenues, resulting in net losses. This trend raises concerns about the company's ability to control costs and generate profits from its operations.

In summary, the negative net profit margins in recent years reflect a challenging profitability situation for Arrowhead Pharmaceuticals Inc., and suggest potential issues with cost management and revenue generation, which may warrant further analysis and attention from stakeholders.