Arcus Biosciences Inc (RCUS)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 7.07 | 12.48 | 140.13 | 711.89 | 7.50 |
| Number of days of payables | days | 43.80 | 49.64 | 66.36 | 47.94 | 125.65 |
| Cash conversion cycle | days | -36.73 | -37.16 | 73.77 | 663.94 | -118.16 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 7.07 – 43.80
= -36.73
Based on the provided data, the cash conversion cycle of Arcus Biosciences Inc has fluctuated significantly over the years.
As of December 31, 2020, the company had a negative cash conversion cycle of -118.16 days, indicating that it was able to convert its inventory and accounts receivable into cash well before paying its accounts payable.
By December 31, 2021, the cash conversion cycle increased dramatically to 663.94 days, suggesting a significant delay in converting inventory and accounts receivable into cash, possibly due to extended payment terms or operational inefficiencies.
However, by December 31, 2022, the cash conversion cycle decreased to 73.77 days, showing an improvement in the company's working capital management and its ability to generate cash from its operating activities.
The trend continued to improve, with the cash conversion cycle further decreasing to -37.16 days as of December 31, 2023, indicating that the company was effectively managing its working capital and generating cash even before incurring expenses.
As of December 31, 2024, the cash conversion cycle remained negative at -36.73 days, indicating that Arcus Biosciences Inc continued to efficiently convert its working capital into cash.
Overall, the company's cash conversion cycle has shown variability but generally appears to reflect improvements in working capital management and operational efficiency over the years.
Peer comparison
Dec 31, 2024