Arrowhead Pharmaceuticals Inc (ARWR)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	-601,080	-547,207	-473,769	-299,413	-205,002	-180,502	-150,708	-157,320	-178,507	-159,560	-118,519	-188,304	-149,037	-134,273	-118,351	-112,359	-93,158	-33,401	1,141	45,392
Total assets	US$ in thousands	1,139,800	883,759	955,150	626,286	765,552	795,856	891,308	891,489	691,939	751,782	703,575	638,539	710,148	734,927	756,795	499,251	522,504	555,728	561,076	587,602
Operating ROA		-52.74%	-61.92%	-49.60%	-47.81%	-26.78%	-22.68%	-16.91%	-17.65%	-25.80%	-21.22%	-16.85%	-29.49%	-20.99%	-18.27%	-15.64%	-22.51%	-17.83%	-6.01%	0.20%	7.72%

September 30, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $-601,080K ÷ $1,139,800K
= -52.74%

Arrowhead Pharmaceuticals Inc's operating return on assets (ROA) has been fluctuating over the past several quarters. The trend shows a gradual decline in operating ROA from a peak of 7.72% in March 2020 to a low of -61.92% in June 2024. Operating ROA measures the company's ability to generate profits from its assets excluding non-operating items. The negative values indicate that Arrowhead Pharmaceuticals Inc's operating income is insufficient to cover its asset base, resulting in losses. This may be attributed to various factors such as declining revenues, increasing expenses, or inefficiencies in asset utilization. The company may need to improve operational efficiency and profitability to enhance its operating ROA and overall financial performance.