Arrowhead Pharmaceuticals Inc (ARWR)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 765,552 | 691,939 | 710,148 | 522,504 | 349,845 |
| Operating ROA | -26.78% | -25.80% | -20.99% | -17.83% | 17.49% |
September 30, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-205,002K ÷ $765,552K
= -26.78%
The operating return on assets (operating ROA) of Arrowhead Pharmaceuticals Inc. has been fluctuating over the past five years. The negative trend indicates that the company's operating income generated from its assets has been insufficient to cover the asset base. The operating ROA deteriorated from -17.83% in 2020 to -26.78% in 2023, reflecting a substantial decrease in the company's ability to generate operating profits relative to its asset base. This suggests that Arrowhead Pharmaceuticals Inc. may be experiencing challenges in efficiently utilizing its assets to generate profits from its operations. It is important for the company to address this trend to improve its operational efficiency and enhance its financial performance in the future.
Peer comparison
Sep 30, 2023