Arcus Biosciences Inc (RCUS)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 | — |
| Payables turnover | 7.18 | 7.02 | 9.64 | 4.05 | 5.35 | 9.68 | 4.19 | 4.60 | 7.43 | 4.79 | 3.43 | 2.15 | 2.81 | 4.68 | 2.93 | 12.60 | 6.09 | 8.86 | 8.48 | 6.19 |
| Working capital turnover | 0.18 | 0.18 | 0.15 | 0.14 | 0.13 | 0.47 | 0.38 | 0.36 | 0.36 | 0.13 | 0.18 | 0.13 | 0.13 | 0.12 | 0.03 | 0.10 | 0.09 | 0.04 | 0.05 | 0.04 |
The activity ratios for Arcus Biosciences Inc provide insights into the company's efficiency in managing its assets and liabilities.
1. Receivables turnover: This ratio indicates how many times the company collects its accounts receivable during a period. Arcus Biosciences Inc has shown varying receivables turnover ratios over the past quarters, ranging from 2.14 to 14.10. A higher ratio is generally preferred as it suggests that the company is efficient in collecting payments from customers.
2. Payables turnover: The data shows a consistent payables turnover ratio of 0.00 across all quarters. This could indicate that the company is not effectively utilizing its accounts payable to manage its cash flow or pay its suppliers promptly.
3. Working capital turnover: The working capital turnover ratio measures how effectively a company is using its working capital to generate revenue. Arcus Biosciences Inc's working capital turnover ratios have ranged from 0.13 to 0.47. A higher ratio signifies better utilization of working capital to drive sales.
Overall, while the company has shown fluctuations in its receivables turnover and working capital turnover ratios, the consistent 0.00 payables turnover ratio raises some concerns regarding the company's management of its payable obligations. Further analysis and comparison with industry benchmarks would provide additional insights into Arcus Biosciences Inc's performance in managing its activity ratios.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (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 | — |
| Number of days of payables | days | 50.86 | 51.98 | 37.87 | 90.04 | 68.27 | 37.69 | 87.06 | 79.42 | 49.09 | 76.16 | 106.37 | 169.69 | 130.02 | 78.01 | 124.66 | 28.97 | 59.95 | 41.18 | 43.03 | 58.98 |
In analyzing Arcus Biosciences Inc's activity ratios, we focus on Days of Sales Outstanding (DSO) as the Days of Inventory on Hand and Number of Days of Payables data is not provided. DSO represents the average number of days it takes the company to collect revenue after a sale.
1. DSO Trend: The DSO ratio has shown significant fluctuations over the past eight quarters. It has ranged from a low of 25.90 days in Q3 2022 to a high of 170.82 days in Q3 2023. Such fluctuation indicates variability in the company's collection process.
2. Q3 2023 Spike: The sharp increase in DSO to 170.82 days in Q3 2023 is a concerning trend. This indicates that Arcus Biosciences Inc may be facing challenges in collecting its accounts receivable promptly during that quarter.
3. Q2 2022 Improvement: In contrast, the DSO decreased to 34.85 days in Q2 2022 compared to the prior quarter, suggesting that the company improved its collection efficiency during that period.
4. Industry Comparison: While understanding the industry benchmarks is crucial for a comprehensive analysis, without Days of Inventory on Hand and Number of Days of Payables data, we are unable to provide further insights into the efficiency of inventory management and payment practices at Arcus Biosciences Inc.
5. Overall Assessment: The fluctuations in the DSO ratio over the analyzed periods highlight the importance for Arcus Biosciences Inc to closely monitor its accounts receivable collection process and aim for consistency and efficiency in managing its cash flow.
Please note that a complete analysis of the company's activity ratios would require additional information, particularly regarding inventory management and payables turnover.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Total asset turnover | 0.11 | 0.10 | 0.10 | 0.09 | 0.08 | 0.31 | 0.28 | 0.26 | 0.25 | 0.06 | 0.12 | 0.10 | 0.10 | 0.10 | 0.03 | 0.09 | 0.07 | 0.03 | 0.04 | 0.03 |
Arcus Biosciences Inc's long-term activity ratios show how efficient the company is in utilizing its assets to generate revenue.
The fixed asset turnover ratio has been decreasing gradually over the past two years, from 11.69 in Q1 2022 to 2.29 in Q4 2023. This indicates a declining efficiency in generating sales revenue from fixed assets such as property, plant, and equipment. The company may need to reevaluate its capital investments and asset utilization strategies to improve efficiency.
On the other hand, the total asset turnover ratio has shown more stability, fluctuating around the 0.10 mark over the past year. This ratio measures the company's ability to generate sales revenue from all assets, including current and fixed assets. While the ratio is low compared to industry standards, it is important for Arcus Biosciences Inc to ensure that its assets are being effectively utilized to generate revenue and maximize profitability.
Overall, Arcus Biosciences Inc may need to focus on optimizing its asset utilization, especially with fixed assets, to improve its long-term activity ratios and enhance overall operational efficiency.