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Arrowhead Pharmaceuticals (Arrowhead Pharmaceuticals) ROE % : -246.19% (As of Dec. 2023)


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What is Arrowhead Pharmaceuticals ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Arrowhead Pharmaceuticals's annualized net income for the quarter that ended in Dec. 2023 was $-531.5 Mil. Arrowhead Pharmaceuticals's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was $215.9 Mil. Therefore, Arrowhead Pharmaceuticals's annualized ROE % for the quarter that ended in Dec. 2023 was -246.19%.

The historical rank and industry rank for Arrowhead Pharmaceuticals's ROE % or its related term are showing as below:

ARWR' s ROE % Range Over the Past 10 Years
Min: -91.59   Med: -52.03   Max: 39.94
Current: -91.59

During the past 13 years, Arrowhead Pharmaceuticals's highest ROE % was 39.94%. The lowest was -91.59%. And the median was -52.03%.

ARWR's ROE % is ranked worse than
72.47% of 1362 companies
in the Biotechnology industry
Industry Median: -44.1 vs ARWR: -91.59

Arrowhead Pharmaceuticals ROE % Historical Data

The historical data trend for Arrowhead Pharmaceuticals's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Arrowhead Pharmaceuticals ROE % Chart

Arrowhead Pharmaceuticals Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 39.94 -23.94 -32.36 -43.62 -61.29

Arrowhead Pharmaceuticals Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -42.63 47.27 -101.47 -137.92 -246.19

Competitive Comparison of Arrowhead Pharmaceuticals's ROE %

For the Biotechnology subindustry, Arrowhead Pharmaceuticals's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Arrowhead Pharmaceuticals's ROE % Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Arrowhead Pharmaceuticals's ROE % distribution charts can be found below:

* The bar in red indicates where Arrowhead Pharmaceuticals's ROE % falls into.



Arrowhead Pharmaceuticals ROE % Calculation

Arrowhead Pharmaceuticals's annualized ROE % for the fiscal year that ended in Sep. 2023 is calculated as

ROE %=Net Income (A: Sep. 2023 )/( (Total Stockholders Equity (A: Sep. 2022 )+Total Stockholders Equity (A: Sep. 2023 ))/ count )
=-205.275/( (398.52+271.343)/ 2 )
=-205.275/334.9315
=-61.29 %

Arrowhead Pharmaceuticals's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Sep. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=-531.456/( (271.343+160.407)/ 2 )
=-531.456/215.875
=-246.19 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


Arrowhead Pharmaceuticals  (NAS:ARWR) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=-531.456/215.875
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-531.456 / 14.204)*(14.204 / 695.919)*(695.919 / 215.875)
=Net Margin %*Asset Turnover*Equity Multiplier
=-3741.59 %*0.0204*3.2237
=ROA %*Equity Multiplier
=-76.33 %*3.2237
=-246.19 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=-531.456/215.875
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-531.456 / -554.756) * (-554.756 / -546.18) * (-546.18 / 14.204) * (14.204 / 695.919) * (695.919 / 215.875)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.958 * 1.0157 * -3845.25 % * 0.0204 * 3.2237
=-246.19 %

Note: The net income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Arrowhead Pharmaceuticals ROE % Related Terms

Thank you for viewing the detailed overview of Arrowhead Pharmaceuticals's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Arrowhead Pharmaceuticals (Arrowhead Pharmaceuticals) Business Description

Traded in Other Exchanges
Address
177 E. Colorado Boulevard, Suite 700, Pasadena, CA, USA, 91105
Arrowhead Pharmaceuticals Inc is an American biotechnology company. Its main target is the development of medicine to treat diseases with a genetic origin, characterized by the overproduction of one or more proteins. Its medical solutions are aimed at the genes that trigger the diseases. Its portfolio includes drugs targeting hepatitis B, Alpha-1 Antitrypsin Deficiency, thrombosis and angioedema, clear-cell and renal cell carcinoma, and cardiovascular disease.
Executives
James C Hamilton other: Senior Vice President 177 EAST COLORADO BLVD, SUITE 700, PASADENA CA 91105
Victoria Vakiener director C/O EPIZYME, INC., 400 TECHNOLOGY SQUARE, CAMBRIDGE MA 02139
Mauro Ferrari director 201 SOUTH LAKE AVENUE, PASADENA CA 91101
William D. Waddill director C/O CALITHERA BIOSCIENCES, 343 OYSTER POINT BLVD, SUITE 200, SO. SAN FRANCISCO CA 94080
Douglas B Given director C/O NEORX CORP, 410 WEST HARRISON ST, SEATTLE WA 98119
Tracie Oliver officer: Chief Commercial Officer 177 E COLORADO BLVD, SUITE 700, PASADENA CA 91105
Patrick O'brien officer: General Counsel 225 S. LAKE AVENUE SUITE 1050, PASADENA CA 91101
Martin Javier San officer: Chief Medical Officer 177 E COLORADO BLVD, STE 700, PASADENA CA 91105
Kenneth Allen Myszkowski officer: CFO ARROWHEAD RESEARCH CORPORATION, 201 SOUTH LAKE AVENUE, SUITE 703, PASADENA CA 91101
Christopher Richard Anzalone director, officer: President and CEO ARROWHEAD RESEARCH CORPORATION, 201 SOUTH LAKE AVENUE, SUITE 703, PASADENA CA 91101
Adeoye Y Olukotun director 3621 SOUTH STATE ST, 695 KMS PL, ANN ARBOR MI 48108
Backer Marianne De director 177 E COLORADO BLVD, SUITE 700, PASADENA CA 91105
Michael S Perry director C/O BIOTRANSPLANT INC, 196 BOSTON AVE SUITE 2800, MEDFORD MA 02155
James Hassard officer: Chief Commercial Officer 177 E COLORADO BLVD, STE 700, PASADENA CA 91105
Curt Bradshaw officer: Chief Scientific Officer 177 E COLORADO BLVD, STE 700, PASADENA CA 91105