Arrowhead Pharmaceuticals Inc (ARWR)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	-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	67,975	45,509	9,567
Total stockholders’ equity	US$ in thousands	160,407	271,343	364,830	446,772	377,039	398,520	453,927	452,266	372,560	408,822	436,890	445,549	454,472	461,779	493,140	494,119	500,084	244,591	226,225	201,195
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%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-296,814K ÷ $160,407K
= -185.04%

Arrowhead Pharmaceuticals Inc.'s return on equity (ROE) has shown significant fluctuation over the past eight quarters. The company's ROE has ranged from -185.04% in Q1 2024 to -24.72% in Q2 2022. The negative ROE figures indicate that the company's net income is insufficient to cover its shareholders' equity, resulting in a loss.

The downward trend in ROE from Q2 2022 to Q1 2024 suggests deteriorating profitability and efficiency in generating returns for shareholders. This decline may be a cause for concern for investors, as it indicates a potential decrease in the company's ability to generate profits from shareholders' equity.

It is important for Arrowhead Pharmaceuticals Inc. to address the underlying issues contributing to the negative ROE and work towards improving its financial performance to enhance shareholder value in the future.