Arrowhead Pharmaceuticals Inc (ARWR)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.34 | 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 | 0.68 | 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 | 2.12 | 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 | 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 |
Arrowhead Pharmaceuticals Inc's solvency ratios show that the company has been managing its debt levels relative to its assets, capital, and equity over the past few quarters.
- Debt-to-assets ratio: Arrowhead Pharmaceuticals Inc's debt-to-assets ratio has been relatively stable around 0.34 in the most recent quarter. This indicates that about 34% of the company's assets are financed by debt, suggesting a moderate level of leverage.
- Debt-to-capital ratio: The debt-to-capital ratio, which stands at 0.68, indicates that 68% of Arrowhead Pharmaceuticals Inc's capital structure is made up of debt. This ratio has been consistent, reflecting a balanced mix of debt and equity in the company's financing.
- Debt-to-equity ratio: With a debt-to-equity ratio of 2.12, Arrowhead Pharmaceuticals Inc relies more heavily on debt to fund its operations compared to equity. However, this ratio has remained stable in recent periods, indicating a consistent level of leverage.
- Financial leverage ratio: The financial leverage ratio has fluctuated over the quarters, with the latest figure at 6.15. This suggests that the company's financial leverage, in terms of total assets to equity, has increased significantly compared to previous periods. It's important for Arrowhead Pharmaceuticals Inc to closely monitor this ratio to ensure sustainable levels of leverage.
Overall, Arrowhead Pharmaceuticals Inc appears to have a manageable level of debt relative to its assets, capital, and equity. However, the increasing financial leverage ratio warrants attention to ensure the company's long-term solvency and financial health.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio for Arrowhead Pharmaceuticals Inc has been negative for the majority of the recent quarters, indicating that the company's operating income is insufficient to cover its interest expenses. This raises concerns about the company's ability to meet its interest obligations from its earnings. Particularly alarming are the extremely low and negative values in the most recent quarters, suggesting a significant financial strain.
It is noteworthy that there were some quarters where the interest coverage ratio was positive, indicating a healthier financial position during those periods. However, the trend towards negative values in the more recent quarters raises red flags regarding the company's financial stability and its ability to manage its debt obligations effectively.
Overall, the consistently negative interest coverage ratios highlight a potentially precarious financial situation for Arrowhead Pharmaceuticals Inc, emphasizing the importance of closely monitoring its financial performance and debt management strategies.