Arcus Biosciences Inc (RCUS)
Liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Current ratio | 4.52 | 5.53 | 7.60 | 6.05 | 8.49 |
| Quick ratio | 4.15 | 5.45 | 7.51 | 6.00 | 8.30 |
| Cash ratio | 4.12 | 5.23 | 3.01 | 5.99 | 8.29 |
Arcus Biosciences Inc's liquidity ratios show a consistent and healthy trend over the past five years. The current ratio has been above 4 in all years, indicating the company's ability to meet its short-term obligations with its current assets. The quick ratio, which excludes inventory from current assets, also reflects strong liquidity levels above 4. The cash ratio, which is the most stringent measure of liquidity, has generally been above 4 as well, suggesting that the company holds sufficient cash to cover its short-term liabilities.
Overall, Arcus Biosciences Inc appears to have a robust liquidity position, with ample resources to meet its immediate financial obligations. Maintaining such strong liquidity ratios is crucial for ensuring operational stability and financial flexibility for the company.
Additional liquidity measure
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -37.16 | 73.77 | 663.94 | -118.16 | -53.50 |
The cash conversion cycle of Arcus Biosciences Inc has shown significant fluctuations over the past five years. In 2019 and 2020, the company had exceptionally short cash conversion cycles of 3.21 days and 8.00 days respectively, indicating efficient management of cash flow and working capital. However, there was a substantial increase in 2021 where the cash conversion cycle jumped to 711.94 days, suggesting a significant delay in converting investments in inventory and receivables into cash.
The company managed to improve the cash conversion cycle in the following years, with a decrease to 127.10 days in 2022 and a further reduction to 118.55 days in 2023. Although showing improvement, the current levels are still higher compared to the baseline years of 2019 and 2020.
Overall, the trend in the cash conversion cycle indicates fluctuations in the efficiency of Arcus Biosciences Inc in managing its working capital and converting investments into cash. Further monitoring and analysis of the company's working capital management practices may be necessary to sustainably improve the cash conversion cycle in the future.