Arrowhead Pharmaceuticals Inc (ARWR)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	271,343	398,520	408,822	461,779	244,591
ROE		-75.65%	-44.18%	-34.45%	-18.31%	27.79%

September 30, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-205,275K ÷ $271,343K
= -75.65%

Arrowhead Pharmaceuticals Inc.'s return on equity (ROE) has exhibited significant fluctuations over the past five years. In 2023, the ROE stands at -75.65%, reflecting a substantial decline compared to the previous year's -44.18%. This negative ROE indicates that the company is generating a net loss in relation to its shareholders' equity. The downward trend in ROE may raise concerns about the company's profitability and operational efficiency. Furthermore, the consistent negative ROE over the past three years suggests potential challenges in generating adequate returns from the shareholders' investments. It is essential for Arrowhead Pharmaceuticals Inc. to address the underlying factors affecting its ROE and implement strategies to improve profitability and efficiency in utilizing shareholder equity.