Arcus Biosciences Inc (RCUS)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		29.25	2.60	0.51	48.69	59.76
DSO	days	12.48	140.13	711.89	7.50	6.11

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 29.25
= 12.48

The Days of Sales Outstanding (DSO) measures the average number of days it takes for a company to collect revenue after making a sale. A lower DSO indicates faster collection of receivables and better cash flow management. In the case of Arcus Biosciences Inc:

- In 2023, the DSO was 118.55 days, showing an improvement from the previous year. This suggests that the company may have enhanced its accounts receivable collection process.

- In 2022, the DSO was 127.10 days, a slight increase from 2021. This could indicate a potential delay in collecting revenue compared to the prior year.

- In 2021, the DSO spiked to 711.94 days, which is unusually high and may raise concerns about the company's ability to collect receivables efficiently. Further investigation into the reasons behind this extreme increase is warranted.

- In 2020, the DSO was 8.00 days, indicating a very efficient collection of receivables, likely due to effective credit management practices.

- In 2019, the DSO was 3.21 days, also reflecting very prompt collection of revenue.

Overall, the trend in DSO for Arcus Biosciences Inc shows variability, with significant fluctuations in recent years. Monitoring DSO trends can provide insights into the company's liquidity, efficiency in managing receivables, and potential credit risks.