Arrowhead Pharmaceuticals Inc (ARWR)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	-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	61,191	40,384	5,868
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Return on total capital		-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%	25.02%	17.85%	2.92%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-276,516K ÷ ($—K + $160,407K)
= -172.38%

Arrowhead Pharmaceuticals Inc.'s return on total capital has been fluctuating over the past eight quarters, with a notable decline in Q1 2024 at -186.66%. This sharp decrease from the previous quarter highlights a significant drop in the company's ability to generate returns relative to its total capital employed. The negative returns in almost all quarters indicate that Arrowhead Pharmaceuticals Inc. is not effectively utilizing its capital to generate profits. Overall, the trend suggests that the company is experiencing challenges in optimizing its capital utilization and may need to reassess its investment and operational strategies to improve its return on total capital in the future.