Arrowhead Pharmaceuticals Inc (ARWR)
Profitability ratios
Return on sales
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 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% | 89.15% | 86.61% | 80.90% |
| Operating profit margin | -180.08% | -91.01% | -73.38% | -56.29% | -56.52% | -73.39% | -63.84% | -44.99% | -130.38% | -107.77% | -124.74% | -132.80% | -140.73% | -105.87% | -27.01% | 0.82% | 27.75% | 36.25% | 29.53% | 6.19% |
| Pretax margin | -178.85% | -89.89% | -71.77% | -54.68% | -54.15% | -70.83% | -61.58% | -42.44% | -126.70% | -101.85% | -116.97% | -122.97% | -128.52% | -96.09% | -19.60% | 6.98% | 32.67% | 40.37% | 33.28% | 10.10% |
| Net profit margin | -178.52% | -91.13% | -73.62% | -56.10% | -55.51% | -72.39% | -61.59% | -42.44% | -126.70% | -101.85% | -116.97% | -122.97% | -128.52% | -96.09% | -19.74% | 6.86% | 32.56% | 40.27% | 33.28% | 10.09% |
The profitability ratios of Arrowhead Pharmaceuticals Inc. show a consistent trend of negative margins across various periods. The gross profit margin remains at 100% in all periods, indicating that the company efficiently manages its production costs. However, the operating profit margin, pretax margin, and net profit margin are all negative, suggesting that the company is experiencing significant operating losses.
The operating profit margin has deteriorated over the periods, reaching as low as -164.75% in Q1 2024, indicating high operating expenses relative to revenue. The pretax margin and net profit margin also exhibit similar negative trends, reflecting the company's inability to generate profits after considering all expenses and taxes.
Overall, based on the profitability ratios, Arrowhead Pharmaceuticals Inc. is facing challenges in achieving profitability, and management may need to focus on optimizing costs, increasing revenues, and improving operational efficiency to reverse the negative trend in margins.
Return on investment
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -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% | 17.49% | 11.99% | 1.76% |
| Return on assets (ROA) | -47.39% | -26.81% | -22.76% | -16.85% | -17.33% | -25.44% | -20.47% | -15.89% | -28.66% | -19.83% | -17.13% | -14.48% | -20.55% | -16.18% | -4.39% | 1.70% | 9.06% | 19.43% | 13.51% | 2.86% |
| Return on total capital | -172.38% | -67.87% | -44.82% | -31.00% | -39.22% | -43.23% | -34.24% | -25.48% | -50.42% | -36.46% | -30.73% | -26.56% | -24.72% | -20.17% | -6.77% | 0.23% | 9.08% | 25.02% | 17.85% | 2.92% |
| Return on equity (ROE) | -185.04% | -75.65% | -49.64% | -33.62% | -40.98% | -44.18% | -33.91% | -24.72% | -49.12% | -34.45% | -28.82% | -24.60% | -22.58% | -18.31% | -4.95% | 1.93% | 10.65% | 27.79% | 20.12% | 4.76% |
Arrowhead Pharmaceuticals Inc. has shown a declining trend in its profitability ratios over the past eight quarters.
- The Operating Return on Assets (Operating ROA) has been consistently negative, indicating that the company is not generating operating profits efficiently relative to its total assets. The ratio worsened from -17.65% in Q1 2023 to -47.81% in Q1 2024, suggesting deteriorating operational performance.
- Similarly, the Return on Assets (ROA) also showed a negative trend, declining from -17.33% in Q1 2023 to -47.39% in Q1 2024. This indicates that the company's overall profitability relative to its total assets has worsened significantly.
- The Return on Total Capital ratio has also been negative and decreasing over the quarters, with a sharp decline from -41.73% in Q1 2023 to -186.66% in Q1 2024. This indicates poor performance in generating returns from both equity and debt capital employed in the business.
- The Return on Equity (ROE) has followed a similar downward trend, falling from -40.98% in Q1 2023 to -185.04% in Q1 2024. This indicates a decreasing ability of the company to generate profits for its shareholders based on their equity investments.
Overall, the consistent negative trend in Arrowhead Pharmaceuticals Inc.'s profitability ratios suggests operational inefficiencies and declining profitability levels over the quarters. Investors and stakeholders may express concerns about the company's ability to improve operational performance and generate returns on investment.