Arrowhead Pharmaceuticals Inc (ARWR)

Return on assets (ROA)

		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
Total assets	US$ in thousands	765,552	691,939	710,148	522,504	349,845
ROA		-26.81%	-25.44%	-19.83%	-16.18%	19.43%

September 30, 2023 calculation

ROA = Net income ÷ Total assets
= $-205,275K ÷ $765,552K
= -26.81%

Based on the provided data, Arrowhead Pharmaceuticals Inc.'s return on assets (ROA) has shown a declining trend over the past five years, with negative values in the recent years indicating a decrease in efficiency in generating profits from its assets.

In 2019, Arrowhead Pharmaceuticals Inc. had a positive ROA of 19.43%, signaling that the company was able to generate a healthy return on its assets. However, this trend started to reverse in subsequent years, with ROA turning negative in 2020 and continuing to decline further in 2021 and 2022.

The negative ROA values in the recent years (-16.18% in 2020, -19.83% in 2021, -25.44% in 2022, and -26.81% in 2023) indicate that the company's net income generated from its assets has been insufficient to cover its total assets, resulting in a loss at the net income level.

From an investor or lender's perspective, a negative ROA suggests that the company is not efficiently utilizing its assets to generate profits, which may raise concerns about its financial performance and operational efficiency.

It is important for Arrowhead Pharmaceuticals Inc. to identify the underlying reasons for the declining ROA and take necessary measures to improve its asset utilization efficiency in order to enhance its overall financial performance and profitability.