Arrowhead Pharmaceuticals Inc (ARWR)

Operating profit margin

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Operating income	US$ in thousands	-205,002	-178,507	-149,036	-93,159	61,191
Revenue	US$ in thousands	222,409	243,231	138,287	87,992	168,796
Operating profit margin		-92.17%	-73.39%	-107.77%	-105.87%	36.25%

September 30, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $-205,002K ÷ $222,409K
= -92.17%

Based on the operating profit margin data for Arrowhead Pharmaceuticals Inc. over the past five years, there are some notable trends and fluctuations.

In 2019, the operating profit margin was 36.25%, indicating that the company was generating a healthy level of profit from its core operations. However, this trend changed dramatically in subsequent years.

From 2020 to 2023, Arrowhead Pharmaceuticals Inc. experienced significant negative operating profit margins. This indicates that the company's operating expenses and costs were exceeding its revenue from core operations, resulting in operating losses.

The operating profit margin deteriorated further over the years, reaching a low of -107.77% in 2021 and -85.16% in 2023. This indicates a consistent pattern of the company's operating expenses outpacing its operating income, resulting in substantial operating losses.

Such a consistent decline in the operating profit margin raises concerns about the company's ability to effectively control its costs and generate profits from its core business activities. It may also suggest potential inefficiencies in the company's cost structure and operations.

In summary, the operating profit margins of Arrowhead Pharmaceuticals Inc. have exhibited a significant downturn over the past five years, indicating operational challenges and potential financial instability. This raises questions about the company's ability to improve its cost structure and return to profitability from its core operations.