Arcus Biosciences Inc (RCUS)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	127,000	206,000	148,000	173,415	57,937
Short-term investments	US$ in thousands	632,000	803,000	351,394	555,231	130,333
Total current liabilities	US$ in thousands	184,000	193,000	166,000	121,669	22,706
Cash ratio		4.12	5.23	3.01	5.99	8.29

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($127,000K + $632,000K) ÷ $184,000K
= 4.12

The cash ratio of Arcus Biosciences Inc has shown fluctuating trends over the past five years. The ratio was highest in 2019 at 8.48, indicating that the company had a significant amount of cash and cash equivalents to cover its current liabilities at that time. However, in the following years, the cash ratio decreased, reaching its lowest point in 2021 at 3.10. This suggests a potential decrease in the company's ability to cover its short-term liabilities with available cash.

In 2022 and 2023, the cash ratio improved slightly but remained below the levels seen in 2019. The cash ratio of 5.33 in 2022 and 4.31 in 2023 still indicates that the company has a sufficient level of cash to cover its short-term obligations, but the downward trend from 2019 is worth monitoring.

Overall, the cash ratio analysis highlights Arcus Biosciences Inc's liquidity position and its ability to meet short-term obligations using its cash reserves. Further analysis of the company's cash management practices and overall liquidity position would be beneficial to gain a comprehensive understanding of its financial health.