Arcus Biosciences Inc (RCUS)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 7.07 | 6.94 | 7.39 | 7.70 | 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 | — |
| Number of days of payables | days | 45.00 | 32.28 | 37.24 | 40.28 | 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 |
| Cash conversion cycle | days | -37.93 | -25.34 | -29.86 | -32.58 | -38.38 | -39.75 | 67.51 | 20.38 | 71.87 | -12.46 | -52.31 | -50.15 | 635.23 | -56.86 | -97.19 | -146.31 | -122.52 | -76.27 | -118.85 | -28.97 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 7.07 – 45.00
= -37.93
The cash conversion cycle of Arcus Biosciences Inc has shown significant fluctuations over the past few years, indicating variations in the company's efficiency in managing its working capital. A negative cash conversion cycle typically suggests that the company is able to convert its inventory into cash quickly, which can be a positive sign as it indicates efficient inventory management and speedy collection of receivables.
From March 31, 2020, to June 30, 2021, the company maintained a consistently negative cash conversion cycle, reflecting strong working capital management during this period. However, a significant spike to 635.23 days on December 31, 2021, suggests potential issues in managing the company's cash flow efficiently during that quarter. This sudden increase could be attributed to various factors such as changes in sales patterns, delays in collections, or extended payment terms.
Subsequently, the cash conversion cycle improved significantly from March 31, 2022, to June 30, 2024, with the company consistently maintaining negative days, indicating a return to more efficient working capital management practices. This improvement suggests that the company took steps to streamline its operations and enhance its cash conversion efficiency.
Overall, the analysis of Arcus Biosciences Inc's cash conversion cycle indicates periods of strong working capital management, along with some fluctuations that may require further investigation to ensure sustained efficiency in cash flow operations.
Peer comparison
Dec 31, 2024