Arcus Biosciences Inc (RCUS)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 258,000 | 117,000 | 112,000 | 382,882 | 77,517 |
| Receivables | US$ in thousands | 5,000 | 4,000 | 43,000 | 746,762 | 1,592 |
| Receivables turnover | 51.60 | 29.25 | 2.60 | 0.51 | 48.69 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $258,000K ÷ $5,000K
= 51.60
The receivables turnover ratio indicates how efficiently a company is collecting payments from its customers. In the case of Arcus Biosciences Inc, there has been a significant fluctuation in the receivables turnover ratio over the years. The ratio was 48.69 in December 31, 2020, reflecting a strong collection efficiency. However, it dropped sharply to 0.51 on December 31, 2021, which could be a cause for concern as it indicates a significant delay in collecting receivables.
Subsequently, the ratio improved to 2.60 on December 31, 2022, although it was still relatively low compared to the initial figure. By December 31, 2023, the receivables turnover ratio had increased significantly to 29.25, indicating a more efficient collection process. Finally, on December 31, 2024, the ratio reached 51.60, which is even higher than the initial level, suggesting that the company has improved its receivables collection efficiency substantially.
Overall, Arcus Biosciences Inc's receivables turnover ratio has shown volatility but seems to have improved over time, reaching a level well above the industry average towards the end of the period under consideration. However, it would be important for the company to maintain this trend to ensure continued strong cash flow and financial health.
Peer comparison
Dec 31, 2024