Arrowhead Pharmaceuticals Inc (ARWR)

Debt-to-capital ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	271,343	398,520	408,822	461,779	244,591
Debt-to-capital ratio		0.00	0.00	0.00	0.00	0.00

September 30, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $271,343K)
= 0.00

Based on the data provided, Arrowhead Pharmaceuticals Inc. has consistently reported a debt-to-capital ratio of 0.00 for the past five years, from 2019 to 2023. This indicates that the company has not utilized any debt as a source of financing for its operations, and its capital structure has been completely equity-funded during this period. A debt-to-capital ratio of 0.00 suggests that the company has a low financial risk and is not significantly reliant on borrowed funds to support its business activities. This may imply a conservative approach to capital structure and financial risk management. However, it is important to note that while a low debt-to-capital ratio signifies financial stability, it can also indicate missed opportunities for leveraging debt to potentially enhance returns for shareholders.