Arrowhead Pharmaceuticals Inc (ARWR)
Solvency ratios
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.34 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.68 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 2.12 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 6.15 | 2.82 | 1.74 | 1.74 | 1.13 |
The solvency ratios of Arrowhead Pharmaceuticals Inc reflect its ability to meet its long-term financial obligations and the level of risk associated with its financial structure.
The debt-to-assets ratio has shown an increasing trend over the years, indicating that the company has utilized more debt to finance its assets. In 2024, the ratio stands at 0.34, suggesting that 34% of the company's assets are financed through debt.
The debt-to-capital ratio also shows a similar increasing trend, reaching 0.68 in 2024. This ratio reveals that 68% of the company's capital is sourced from debt, which implies higher financial leverage and risk.
The debt-to-equity ratio, at 2.12 in 2024, indicates that Arrowhead Pharmaceuticals has a higher level of debt relative to equity. This could potentially expose the company to greater financial risk, particularly in periods of economic downturn or interest rate fluctuations.
The financial leverage ratio has consistently increased over the years, reaching 6.15 in 2024. This suggests that the company has significantly higher financial leverage compared to previous years, which could amplify both returns and risks for shareholders.
Overall, the solvency ratios of Arrowhead Pharmaceuticals Inc indicate a progressive increase in the company's reliance on debt financing, raising concerns about its financial risk and ability to manage debt obligations effectively. Investors and stakeholders should closely monitor these solvency ratios to assess the company's long-term financial health and sustainability.
Coverage ratios
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | -18.58 | -10.05 | — | — | -0.01 |
The interest coverage ratio for Arrowhead Pharmaceuticals Inc has been volatile over the past five years, ranging from -18.58 in 2024 to -0.01 in 2020. A negative interest coverage ratio indicates that the company's earnings before interest and taxes (EBIT) are not sufficient to cover its interest expenses, raising concerns about the company's ability to meet its debt obligations. This trend suggests that Arrowhead Pharmaceuticals Inc may be facing financial challenges in generating enough operating income to cover its interest payments, which could potentially impact its creditworthiness and financial stability. Further analysis and monitoring of the company's financial performance and debt management strategies are advisable to assess the risks associated with its interest coverage ratio.