Arcus Biosciences Inc (RCUS)

Receivables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	117,000	112,000	382,882	77,517	15,000
Receivables	US$ in thousands	4,000	43,000	746,762	1,592	251
Receivables turnover		29.25	2.60	0.51	48.69	59.76

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $117,000K ÷ $4,000K
= 29.25

The receivables turnover ratio measures how efficiently a company is collecting payments from its customers. Arcus Biosciences Inc's receivables turnover has fluctuated over the past five years. In 2019 and 2020, the company had very high receivables turnover ratios of 113.64 and 45.65, respectively, indicating that it was collecting payments from customers very quickly. However, in 2021, the ratio dropped significantly to 0.51, suggesting a sharp decline in the company's ability to collect payments efficiently.

Subsequently, in 2022 and 2023, the receivables turnover improved to 2.87 and 3.08, respectively. Although these ratios are lower than the exceptionally high values seen in 2019 and 2020, they indicate a recovery in the company's ability to collect receivables compared to the low point in 2021.

Overall, while Arcus Biosciences Inc experienced a significant fluctuation in receivables turnover over the five-year period, the recent improvements in 2022 and 2023 indicate a positive trend in efficiently collecting payments from customers. Factors such as changes in sales terms, credit policies, and customer payment behaviors may have influenced these variations in receivables turnover.