Arrowhead Pharmaceuticals Inc (ARWR)
Interest coverage
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -601,080 | -184,165 | -172,278 | -140,846 | -93,159 |
| Interest expense | US$ in thousands | 32,352 | 18,326 | 0 | 0 | 9,190,500 |
| Interest coverage | -18.58 | -10.05 | — | — | -0.01 |
September 30, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $-601,080K ÷ $32,352K
= -18.58
The interest coverage ratio for Arrowhead Pharmaceuticals Inc has shown a declining trend over the past five years, indicating a deterioration in the company's ability to cover its interest expenses with its operating income. In Sep 30, 2024, the interest coverage ratio is -18.58, a significant decrease from -10.05 in Sep 30, 2023, and -0.01 in Sep 30, 2020.
The negative values for the interest coverage ratio suggest that the company's operating income is insufficient to cover its interest expenses, which is a concerning sign for creditors and investors. This trend raises questions about the company's financial health and its ability to meet its debt obligations in the long term.
Overall, Arrowhead Pharmaceuticals Inc's interest coverage ratio indicates a high level of financial risk, as the company is struggling to generate enough operating income to cover its interest expenses, potentially impacting its creditworthiness and overall stability.
Peer comparison
Sep 30, 2024