Arcus Biosciences Inc (RCUS)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	117,000	119,355	121,236	118,995	112,000	433,144	408,724	399,137	398,304	53,292	108,361	92,939	77,517	77,780	15,000	15,000	15,000	6,812	9,353	8,853
Property, plant and equipment	US$ in thousands	51,000	50,000	45,000	37,000	35,000	33,892	33,416	33,481	32,000	28,818	23,806	14,849	10,807	8,728	8,264	8,761	9,330	10,011	10,362	11,026
Fixed asset turnover		2.29	2.39	2.69	3.22	3.20	12.78	12.23	11.92	12.45	1.85	4.55	6.26	7.17	8.91	1.82	1.71	1.61	0.68	0.90	0.80

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $117,000K ÷ $51,000K
= 2.29

The fixed asset turnover ratio for Arcus Biosciences Inc has shown some fluctuations over the past eight quarters. The ratio measures how efficiently the company is generating revenue from its fixed assets.

In Q1 2023, the fixed asset turnover ratio reached its peak at 3.22, indicating that the company generated $3.22 in revenue for every dollar invested in fixed assets during that quarter. This suggests that Arcus Biosciences was effectively utilizing its fixed assets to drive revenue at that time.

However, in subsequent quarters, the fixed asset turnover ratio declined. By Q4 2023, the ratio had decreased to 2.29, signifying a decrease in revenue generation relative to fixed assets investment compared to Q1 2023.

Notably, in Q2 and Q3 of 2022, the company experienced exceptionally high fixed asset turnover ratios of 12.23 and 12.77, respectively. This indicates that during those periods, Arcus Biosciences was exceptionally efficient in generating revenue from its fixed assets.

Overall, the fluctuations in the fixed asset turnover ratio suggest variations in the company's efficiency in utilizing its fixed assets to generate revenue. It would be important for Arcus Biosciences to maintain a balance between maximizing revenue from fixed assets and controlling the investment in these assets to ensure optimal operational efficiency.