Arcus Biosciences Inc (RCUS)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 4.50 | 5.24 | 5.14 | 5.22 | 4.52 | 4.41 | 5.48 | 5.67 | 5.53 | 6.21 | 7.48 | 7.84 | 7.60 | 3.82 | 5.72 | 6.38 | 6.05 | 4.89 | 11.78 | 7.91 |
| Quick ratio | 4.35 | 5.09 | 4.89 | 4.90 | 4.15 | 4.02 | 5.36 | 5.53 | 5.45 | 6.09 | 7.39 | 7.73 | 7.51 | 3.69 | 5.55 | 6.31 | 6.00 | 4.81 | 11.56 | 7.52 |
| Cash ratio | 4.33 | 5.07 | 4.87 | 4.88 | 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 |
The liquidity ratios of Arcus Biosciences Inc show a strong ability to meet its short-term obligations with the current ratio consistently above 1.0 over the reporting periods. The current ratio ranged from a high of 11.78 in June 2020 to a low of 3.82 in September 2021, indicating fluctuations but generally staying well above the acceptable level.
Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also reflects a healthy liquidity position for the company. The quick ratio ranged from a high of 11.56 in June 2020 to a low of 3.69 in September 2021, staying relatively strong throughout the periods.
The cash ratio, which is the most conservative liquidity measure as it only includes cash and cash equivalents, also showcases a solid liquidity position for Arcus Biosciences Inc. The cash ratio consistently remained above 1.0, indicating the company's ability to cover its short-term liabilities with cash on hand.
Overall, based on the analysis of the liquidity ratios, Arcus Biosciences Inc appears to have a sound liquidity position, with sufficient current assets to cover its short-term obligations, even as there were some fluctuations in the ratios over the reporting periods.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The cash conversion cycle of Arcus Biosciences Inc has exhibited significant fluctuations over the period from March 31, 2020, to December 31, 2024. The cash conversion cycle represents the time it takes for a company to convert its investment in inventory and other inputs into cash flows from sales.
Initially, the company had negative cash conversion cycle values, indicating efficient management of working capital, as it was able to convert its operating cycle into cash quickly. However, towards the end of 2021 and into 2022, there was a drastic change, with the cash conversion cycle showing a significant increase to 635.23 days by December 31, 2021.
This prolonged cash conversion cycle may suggest potential issues with inventory management, slow collection of receivables, or delays in paying suppliers, leading to a negative impact on the company's cash flow and liquidity position.
Subsequently, the company improved its cash conversion cycle performance, as seen in the negative values from March 31, 2022, to December 31, 2024, indicating a more efficient management of working capital and faster conversion of resources into cash.
Overall, monitoring and managing the cash conversion cycle is crucial for Arcus Biosciences Inc to ensure optimal utilization of resources, maintain liquidity, and sustain operational efficiency.