Arcus Biosciences Inc (RCUS)

Days of sales outstanding (DSO)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Receivables turnover		51.60	29.25	2.60	0.51	48.69
DSO	days	7.07	12.48	140.13	711.89	7.50

December 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 51.60
= 7.07

Based on the provided data, Arcus Biosciences Inc experienced fluctuations in its Days Sales Outstanding (DSO) over the years. In December 31, 2020, the company had a remarkably low DSO of 7.50 days, indicating its efficiency in collecting payments from customers.

However, this efficiency deteriorated significantly by December 31, 2021, with the DSO soaring to 711.89 days. Such a prolonged collection period may raise concerns about the company's credit policies and potentially signal issues with accounts receivable management.

In the following years, Arcus Biosciences Inc managed to improve its DSO performance. By December 31, 2022, the DSO had decreased to 140.13 days, reflecting efforts to streamline collections processes. Subsequently, in December 31, 2023, the DSO dropped further to 12.48 days, indicating enhanced efficiency in converting sales into cash.

By December 31, 2024, Arcus Biosciences Inc maintained a relatively low DSO of 7.07 days, suggesting continued effectiveness in managing accounts receivable.

Overall, the fluctuating trend in Arcus Biosciences Inc's DSO highlights the company's efforts to optimize cash flow management and enhance customer credit practices over the years. Investment analysts might view these improvements positively as they indicate better liquidity and operational efficiency.