Arcus Biosciences Inc (RCUS)

Days of sales outstanding (DSO)

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Receivables turnover		29.25	29.84	3.46	3.31	2.60	14.47	10.50	12.47	0.53	18.91	39.78	15.61	48.69	209.09	62.76	—	59.76	—	150.85	—
DSO	days	12.48	12.23	105.37	110.42	140.13	25.23	34.75	29.27	684.32	19.30	9.18	23.38	7.50	1.75	5.82	—	6.11	—	2.42	—

December 31, 2023 calculation

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

The Days of Sales Outstanding (DSO) ratio measures the average number of days it takes for a company to collect its accounts receivable. A lower DSO indicates that the company is collecting payments more quickly, while a higher DSO suggests a longer collection period.

Analyzing Arcus Biosciences Inc's DSO over the past four quarters, we observe fluctuations in the collection efficiency. In Q3 2023, the DSO spiked to 170.82 days, which indicates a significant delay in receivables collection compared to the previous quarter. This may raise concerns about potential liquidity issues or difficulties in collecting payments from customers.

However, in Q2 2023, the DSO decreased to 102.36 days, suggesting an improvement in collections efficiency compared to Q1 2023. This could reflect better credit control or prompt payment processing.

Looking back to Q4 2022, the DSO was 127.10 days, indicating a longer collection period compared to Q3 2022 when it was only 25.90 days. Such a substantial increase might signal challenges in accounts receivable management during Q4 2022.

Overall, monitoring the DSO trend of Arcus Biosciences Inc can provide insights into its receivables management effectiveness and cash flow health. It is crucial for the company to strive for a balance between timely collections and maintaining good customer relationships to ensure sustainable financial performance.