Arcus Biosciences Inc (RCUS)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — |
| Receivables turnover | 51.60 | 29.25 | 2.60 | 0.51 | 48.69 |
| Payables turnover | 8.33 | 7.35 | 5.50 | 7.61 | 2.90 |
| Working capital turnover | 0.33 | 0.18 | 0.13 | 0.35 | 0.13 |
Arcus Biosciences Inc's activity ratios paint a picture of the efficiency with which the company is managing its assets and liabilities.
- Receivables Turnover: This ratio indicates how many times, on average, the company collects its accounts receivable during a period. Arcus Biosciences Inc's receivables turnover has fluctuated significantly over the years, from a low of 0.51 in 2021 to a high of 51.60 in 2024. The significant increase in 2024 suggests a faster turnover of receivables, indicating that the company is collecting its outstanding payments more efficiently.
- Payables Turnover: The payables turnover ratio reveals how many times, on average, the company pays its suppliers during a specific period. Arcus Biosciences Inc's payables turnover has been relatively stable, with a gradual increase from 2.90 in 2020 to 8.33 in 2024. This indicates that the company is managing its accounts payable effectively and paying its suppliers at a consistent rate.
- Working Capital Turnover: This ratio measures how efficiently the company utilizes its working capital to generate sales. Arcus Biosciences Inc's working capital turnover has shown fluctuations over the years, with a notable increase from 0.13 in 2020 to 0.33 in 2024. This suggests an improvement in the company's ability to generate sales revenue using its working capital efficiently.
- Inventory Turnover: Unfortunately, there is no data available for Arcus Biosciences Inc's inventory turnover, which could provide insights into how quickly the company is selling its inventory. Without this data, it is challenging to evaluate the efficiency of the company's inventory management practices.
Overall, the data indicates that Arcus Biosciences Inc has made progress in improving its efficiency in managing receivables, payables, and working capital, which are crucial aspects of its operations. However, the lack of information on inventory turnover limits the overall assessment of the company's activity ratios.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 7.07 | 12.48 | 140.13 | 711.89 | 7.50 |
| Number of days of payables | days | 43.80 | 49.64 | 66.36 | 47.94 | 125.65 |
Based on the provided data, we can analyze the activity ratios of Arcus Biosciences Inc as follows:
1. Days of Inventory on Hand (DOH): The data shows that the company did not report specific values for Days of Inventory on Hand for the years 2020 to 2024, indicating that this information might not be available or calculated using the provided data.
2. Days of Sales Outstanding (DSO): The Days of Sales Outstanding ratio measures how quickly a company collects cash after making a sale. Arcus Biosciences Inc experienced significant fluctuations in this ratio over the years. In particular:
- In 2020, the DSO was relatively low at 7.50 days, suggesting efficient collection of sales revenue.
- However, in 2021, the DSO dramatically increased to 711.89 days, indicating a significant delay in collecting payments from customers.
- The ratio improved in the following years, with values of 140.13 days in 2022, 12.48 days in 2023, and 7.07 days in 2024. These improvements suggest a better management of accounts receivable and a quicker cash conversion cycle.
3. Number of Days of Payables: The Number of Days of Payables ratio reflects how long a company takes to pay its suppliers. Arcus Biosciences Inc showed fluctuations in this ratio over the years, with the following observations:
- In 2020, the company took 125.65 days on average to pay its suppliers.
- The ratio decreased to 47.94 days in 2021, indicating a significant improvement in managing payables.
- Subsequently, the number of days of payables increased slightly to 66.36 days in 2022, and then decreased to 49.64 days in 2023 and 43.80 days in 2024. These changes suggest variations in the company's payment practices and relationships with suppliers.
In conclusion, the analysis of activity ratios for Arcus Biosciences Inc indicates fluctuations in how the company manages its inventory, receivables, and payables over the years. The company's performance in terms of collecting sales revenue and paying suppliers varied significantly, showing improvements in certain areas while experiencing challenges in others.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 5.49 | 2.29 | 3.20 | 11.97 | 7.17 |
| Total asset turnover | 0.22 | 0.11 | 0.08 | 0.24 | 0.10 |
The Fixed Asset Turnover ratio measures how efficiently a company is generating revenue from its investments in fixed assets. In the case of Arcus Biosciences Inc, the ratio has fluctuated over the years, indicating changes in the company's ability to generate sales from its fixed assets.
- In 2020, Arcus Biosciences had a Fixed Asset Turnover of 7.17, showing that it generated $7.17 in sales for every $1 invested in fixed assets.
- This ratio improved significantly in 2021 to 11.97, suggesting that the company became more efficient in utilizing its fixed assets to generate revenue.
- However, there was a sharp decline in 2022 to 3.20, indicating a decrease in the efficiency of converting fixed assets into sales.
- The trend continued in 2023 with a lower Fixed Asset Turnover of 2.29, suggesting a further decline in generating sales from fixed assets.
- In 2024, there was an improvement to a ratio of 5.49, signifying a partial recovery in the efficiency of utilizing fixed assets to generate revenue.
On the other hand, the Total Asset Turnover ratio reflects how well a company is using all its assets to generate revenue.
- Arcus Biosciences had a Total Asset Turnover of 0.10 in 2020, indicating that it generated $0.10 in sales for every $1 invested in total assets.
- This ratio significantly improved in 2021 to 0.24, demonstrating a more effective utilization of all assets to generate revenue.
- However, in 2022, the Total Asset Turnover declined to 0.08, suggesting a decrease in the overall efficiency of asset utilization for revenue generation.
- The ratio slightly rebounded in 2023 to 0.11, indicating a modest improvement in utilizing total assets to generate sales.
- By 2024, there was a further improvement in the Total Asset Turnover to 0.22, showing that the company was better at generating sales from its total assets.
In summary, while the trends in both the Fixed Asset Turnover and Total Asset Turnover ratios have varied over the years, they provide insights into Arcus Biosciences Inc's operational efficiency and asset utilization in generating revenue.