Arrowhead Pharmaceuticals Inc (ARWR)
Solvency ratios
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 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 | 1.43 | 1.49 | 1.66 |
Based on the provided solvency ratios for Arrowhead Pharmaceuticals Inc., we can observe the following trends:
1. Debt-to-assets ratio: The company consistently maintained a debt-to-assets ratio of 0.00 across all quarters, indicating that it has not utilized debt financing to fund its operations and investments.
2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio remained at 0.00 in each quarter, indicating that the company's capital structure has not included any debt.
3. Debt-to-equity ratio: The debt-to-equity ratio also remained consistently at 0.00 across all quarters, confirming that Arrowhead Pharmaceuticals Inc. has not relied on debt to finance its operations relative to its equity position.
4. Financial leverage ratio: The financial leverage ratio fluctuated over the quarters, ranging from 1.56 to 3.90. A higher financial leverage ratio signifies a greater reliance on debt to support the company's operations and investments. Arrowhead Pharmaceuticals Inc. saw an increase in financial leverage from Q2 2022 to Q1 2024, indicating a potential shift towards increased reliance on debt financing.
In conclusion, based on the solvency ratios provided, Arrowhead Pharmaceuticals Inc. has predominantly operated with a minimal level of debt and a strong equity position. However, the increasing trend in the financial leverage ratio suggests a potential shift in the company's capital structure towards utilizing more debt in its financing activities.
Coverage ratios
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -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 | 0.01 | 0.01 | 0.00 |
Based on the data provided, Arrowhead Pharmaceuticals Inc. has had significant fluctuations in its interest coverage ratio in recent quarters. In Q1 2024 and Q4 2023, the interest coverage ratios were -55.19 and -67.72, respectively, indicating that the company's earnings before interest and taxes (EBIT) were insufficient to cover its interest expenses during these periods.
The interest coverage ratio in Q3 2023 plummeted to -2,694.06, suggesting a substantial decline in EBIT relative to interest expenses. The negative values of the interest coverage ratios across these quarters raise concerns about the company's ability to meet its interest obligations using its operating income.
It's important to note that in Q2 2023, as well as in previous quarters, there is no data available for the interest coverage ratio. The absence of this data may indicate a lack of information or a potential issue with the calculation or reporting of financial ratios during those periods.
In summary, the trend of negative interest coverage ratios in recent quarters for Arrowhead Pharmaceuticals Inc. signifies a financial risk related to the company's ability to service its debt obligations from its operating earnings. Further analysis and monitoring of the company's financial performance and debt management practices are recommended.