Arcus Biosciences Inc (RCUS)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	127,000	184,000	230,000	238,000	206,000	218,000	273,000	549,000	148,000	179,432	320,482	390,260	173,415	221,849	285,185	67,326	57,937	78,992	76,068	68,499
Short-term investments	US$ in thousands	632,000	615,000	700,000	716,000	803,000	831,135	900,147	664,751	351,394	345,210	400,530	436,666	555,231	560,583	177,288	90,540	130,333	111,997	148,330	173,436
Total current liabilities	US$ in thousands	184,000	200,000	180,000	179,000	193,000	177,176	164,024	161,254	166,000	142,866	130,370	132,055	121,669	162,871	40,025	21,004	22,706	21,057	26,513	19,003
Cash ratio		4.12	4.00	5.17	5.33	5.23	5.92	7.15	7.53	3.01	3.67	5.53	6.26	5.99	4.80	11.55	7.52	8.29	9.07	8.46	12.73

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 been gradually decreasing over the past eight quarters, starting at 7.64 in Q1 2022 and reaching 4.31 in Q4 2023. This indicates that the company's ability to meet its short-term obligations solely with its cash and cash equivalents has been declining. Although the cash ratio is still above 1, suggesting the company has sufficient liquid assets to cover its short-term liabilities, the downward trend may raise concerns about potential liquidity issues in the future. Further analysis of the company's cash flow and working capital management practices may be necessary to understand the underlying reasons for the decreasing cash ratio.