Arrowhead Pharmaceuticals Inc (ARWR)

Financial leverage ratio

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Total assets	US$ in thousands	1,139,800	883,759	955,150	626,286	765,552	795,856	891,308	891,489	691,939	751,782	703,575	638,539	710,148	734,927	756,795	499,251	522,504	555,728	561,076	587,602
Total stockholders’ equity	US$ in thousands	185,444	330,547	483,794	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
Financial leverage ratio		6.15	2.67	1.97	3.90	2.82	2.18	1.99	2.36	1.74	1.66	1.56	1.71	1.74	1.68	1.70	1.10	1.13	1.13	1.14	1.18

September 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,139,800K ÷ $185,444K
= 6.15

The financial leverage ratio of Arrowhead Pharmaceuticals Inc has shown fluctuations over the past few quarters. The ratio measures the extent to which the company utilizes debt to finance its operations and investments. A higher ratio indicates a higher level of financial risk due to increased debt obligations.

Looking at the data provided, the financial leverage ratio has been trending upwards since the end of 2019, reaching a peak of 6.15 at the end of September 2024. This significant increase in the ratio suggests a considerable increase in the company's debt relative to its equity over this period.

It is important to note that a high financial leverage ratio can indicate a higher level of financial risk for the company, as it may struggle to meet its debt obligations, especially in times of economic uncertainty or a downturn in the industry. On the other hand, a low financial leverage ratio is usually considered less risky as the company is less reliant on debt financing.

Overall, the trend of Arrowhead Pharmaceuticals Inc's financial leverage ratio indicates a shift towards a higher level of debt in its capital structure in recent quarters. This could potentially expose the company to increased financial risk and impact its overall financial stability and flexibility. It would be important for stakeholders to closely monitor the company's debt levels and management strategies to ensure sustainable financial performance in the future.