Arrowhead Pharmaceuticals Inc (ARWR)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -587,210 | -527,399 | -448,304 | -276,516 | -184,165 | -163,499 | -138,499 | -147,865 | -172,278 | -155,435 | -115,257 | -187,855 | -149,037 | -134,273 | -118,351 | -112,359 | -93,158 | -33,401 | 1,141 | 45,392 |
| Interest expense (ttm) | US$ in thousands | 32,352 | 22,967 | 23,031 | 20,844 | 18,326 | 13,064 | 7,906 | 2,849 | 0 | 6,120 | 7,400 | 8,924 | 11,093 | 9,195,473 | 11,528,843 | 11,529,724 | 13,707,425 | 11,474,695 | 10,880,005 | 10,879,486 |
| Interest coverage | -18.15 | -22.96 | -19.47 | -13.27 | -10.05 | -12.52 | -17.52 | -51.90 | — | -25.40 | -15.58 | -21.05 | -13.44 | -0.01 | -0.01 | -0.01 | -0.01 | -0.00 | 0.00 | 0.00 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-587,210K ÷ $32,352K
= -18.15
Arrowhead Pharmaceuticals Inc's interest coverage ratio has shown significant fluctuations over the past few quarters. The negative figures indicate that the company's operating income is insufficient to cover its interest expenses, posing a potential risk in meeting its debt obligations. The ratios have ranged from -51.90 to -10.05, with no positive coverage until the last few quarters, where the company's interest coverage improved to relatively better levels. However, caution is warranted as the figures were very close to breakeven at 0.00 in the recent quarters, indicating a delicate balance between income and interest expenses. Investors and creditors would closely monitor whether Arrowhead Pharmaceuticals Inc can sustain this improvement in interest coverage to ensure its financial stability and ability to manage its debt commitments effectively.
Peer comparison
Sep 30, 2024