Arcus Biosciences Inc (RCUS)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 150,000 | 125,000 | 110,000 | 76,129 | 45,553 |
| Payables | US$ in thousands | 18,000 | 17,000 | 20,000 | 10,000 | 15,682 |
| Payables turnover | 8.33 | 7.35 | 5.50 | 7.61 | 2.90 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $150,000K ÷ $18,000K
= 8.33
The payables turnover ratio of Arcus Biosciences Inc has shown a positive trend over the past five years, increasing from 2.90 in December 31, 2020, to 8.33 in December 31, 2024. This indicates that the company is managing its accounts payable more efficiently and paying its suppliers more frequently in recent years.
A higher payables turnover ratio suggests that the company is utilizing its cash effectively by promptly settling its payables, which can lead to improved relationships with suppliers and potential discounts for early payments. However, an excessively high ratio could also indicate that the company may be aggressively managing its payables which could strain relationships with suppliers.
Overall, the increasing trend in Arcus Biosciences Inc's payables turnover ratio reflects improvements in the company's liquidity management and operational efficiency in handling its accounts payable obligations.
Peer comparison
Dec 31, 2024