Arrowhead Pharmaceuticals Inc (ARWR)

Debt-to-capital ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Long-term debt	US$ in thousands	393,183	0	—	—	—
Total stockholders’ equity	US$ in thousands	185,444	271,343	398,520	408,822	461,779
Debt-to-capital ratio		0.68	0.00	0.00	0.00	0.00

September 30, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $393,183K ÷ ($393,183K + $185,444K)
= 0.68

The debt-to-capital ratio for Arrowhead Pharmaceuticals Inc has shown a significant increase from 0.00 in 2020 to 0.68 in 2024. This indicates that the company has taken on debt relative to its capital structure over the past five years.

In 2024, the debt-to-capital ratio of 0.68 implies that approximately 68% of the company's capital structure is financed through debt. This may signify a shift towards a more leveraged position, potentially to fund expansion, research and development, or other strategic initiatives.

It is essential for investors and stakeholders to monitor the trend of the debt-to-capital ratio over time to assess the company's financial health and risk profile. A rising ratio could indicate increased financial leverage and higher risk, while a declining ratio may signal improved financial stability. Further analysis of the company's overall financial health and sustainability would be necessary to fully understand the implications of the changes in the debt-to-capital ratio.