Arcus Biosciences Inc (RCUS)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | 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 |
| Receivables | US$ in thousands | 4,000 | 43,000 | 746,762 | 1,592 | 251 |
| Total current liabilities | US$ in thousands | 184,000 | 193,000 | 166,000 | 121,669 | 22,706 |
| Quick ratio | 4.15 | 5.45 | 7.51 | 6.00 | 8.30 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($127,000K
+ $632,000K
+ $4,000K)
÷ $184,000K
= 4.15
The quick ratio of Arcus Biosciences Inc has exhibited a declining trend over the past five years, indicating a decrease in the company's short-term liquidity. The ratio stood at a relatively high 8.49 in 2019, indicating a strong ability to cover its short-term liabilities with its most liquid assets. However, this ratio gradually decreased to 4.52 in 2023.
Although the quick ratio has decreased, the company still maintains a strong ability to meet its short-term obligations with its quick assets (assets that can be readily converted into cash) in the most recent year analyzed. This implies that Arcus Biosciences Inc still has a comfortable buffer to cover its short-term liabilities without relying on selling its less liquid assets. It is important to continue monitoring this ratio to ensure the company's liquidity position remains healthy.
Peer comparison
Dec 31, 2023