Arrowhead Pharmaceuticals Inc (ARWR)

Return on assets (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
Net income (ttm)	US$ in thousands	-599,493	-538,636	-470,789	-296,814	-205,275	-181,107	-150,207	-154,516	-176,063	-153,926	-111,804	-182,988	-140,848	-125,907	-109,594	-102,612	-84,553	-24,415	9,532	53,265
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
ROA		-52.60%	-60.95%	-49.29%	-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%

September 30, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $-599,493K ÷ $1,139,800K
= -52.60%

Arrowhead Pharmaceuticals Inc's return on assets (ROA) has shown fluctuating performance over the past few years. The ROA has been negative for most recent quarters, indicating that the company is not effectively utilizing its assets to generate profits. The ROA deteriorated significantly from 2019 to 2022, with values ranging from -28.66% to -52.60%. This downward trend suggests a decline in the company's ability to generate earnings relative to its total assets.

Furthermore, the latest ROA figure of -52.60% for September 2024 indicates a significant decrease in profitability compared to the previous quarter. This could be a cause for concern as it implies that the company's asset efficiency has worsened further.

In conclusion, Arrowhead Pharmaceuticals Inc's ROA has been on a downward trajectory, reflecting challenges in generating returns from its assets. The company may need to reassess its asset management strategies to improve profitability and long-term sustainability.