Arrowhead Pharmaceuticals Inc (ARWR)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	-587,210	-527,399	-448,304	-276,516	-184,165	-163,499	-138,499	-147,865	-172,278	-155,435	-115,257	-187,855	-149,037	-134,273	-118,351	-112,359	-93,158	-33,401	1,141	45,392
Long-term debt	US$ in thousands	393,183	—	—	—	0	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	185,444	330,547	483,794	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
Return on total capital		-101.48%	-159.55%	-92.66%	-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%

September 30, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-587,210K ÷ ($393,183K + $185,444K)
= -101.48%

Arrowhead Pharmaceuticals Inc has shown a fluctuating trend in its return on total capital over the past few quarters. The return on total capital has been negative in most of the recent quarters, indicating that the company's capital investments have not been generating sufficient returns to cover both debt and equity capital providers. In particular, the return on total capital has been notably low in the recent quarters, reaching its lowest points in Jun 2024 and Dec 2023. This suggests that the company may be facing challenges in efficiently utilizing its capital to generate profits. It will be important for Arrowhead Pharmaceuticals Inc to closely evaluate its capital allocation strategies and operational efficiency to improve its return on total capital in the future.