Arrowhead Pharmaceuticals Inc (ARWR)

Debt-to-equity 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-equity ratio		0.00	0.00	0.00	0.00	0.00

September 30, 2023 calculation

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

The debt-to-equity ratio for Arrowhead Pharmaceuticals Inc. has been consistently at 0.00 from 2019 to 2023. This indicates that the company has not utilized any debt to finance its operations and growth, relying solely on equity for funding. While a low or zero debt-to-equity ratio may imply strong financial stability and a lower risk of bankruptcy, it also suggests that the company may be missing out on the potential tax benefits of debt financing. It may also indicate that the company is not taking advantage of leverage to potentially increase returns for its shareholders. Therefore, further analysis of the company's capital structure and overall financial strategy could provide a more comprehensive understanding of its financial health and decision-making.