Arcus Biosciences Inc (RCUS)
Cash conversion cycle
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 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 | — | 6.11 | — | 2.42 | — |
| Number of days of payables | days | 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 | 59.95 | 41.18 | 43.03 | 58.98 |
| Cash conversion cycle | days | -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 | -53.85 | -41.18 | -40.61 | -58.98 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 12.48 – 50.86
= -38.38
The cash conversion cycle of Arcus Biosciences Inc fluctuated significantly over the past eight quarters, indicating fluctuations in its efficiency in managing cash flow from operations. In Q3 2023, the company's cash conversion cycle was the highest at 170.82 days, suggesting a lengthening of the time it takes to convert its investments in inventory and other resources into cash. This may indicate potential inefficiencies in inventory management or collection of receivables during that period.
On the other hand, in Q2 2023, the cash conversion cycle improved to 102.36 days, reflecting a more efficient cash flow management compared to the previous quarter. However, it increased again in Q4 2023 to 118.55 days, which might be a cause for concern as it indicates a potential slowdown in the conversion of investments into cash during that period.
Comparing to previous quarters, Q3 2022 had the lowest cash conversion cycle at 25.90 days, indicating a high efficiency in cash flow management during that period. This significant improvement suggests that the company was able to streamline its operations to convert investments into cash quickly and effectively.
Overall, it is essential for Arcus Biosciences Inc to closely monitor its cash conversion cycle to ensure efficient management of cash flow and optimize working capital to support its operations and growth strategies effectively.
Peer comparison
Dec 31, 2023