Arcus Biosciences Inc (RCUS)

Quick 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 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
Receivables US$ in thousands 4,000 4,000 35,000 36,000 43,000 29,944 38,916 32,008 746,762 2,818 2,724 5,953 1,592 372 239 251 0 62 0
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
Quick ratio 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 8.30 9.07 8.47 12.73

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, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets, excluding inventory. Arcus Biosciences Inc's quick ratio has been consistently strong over the past eight quarters, ranging from 4.41 to 7.84.

The upward trend from Q1 2022 to Q2 2023 indicates an improving ability to cover its short-term liabilities with liquid assets. This suggests a favorable liquidity position for the company, with higher values indicating greater ability to quickly pay off current obligations.

A quick ratio above 1 generally indicates that a company can meet its short-term liabilities with ease, and Arcus Biosciences Inc significantly exceeds this threshold in all periods analyzed. However, it's important to note that an extremely high quick ratio may also suggest an inefficient use of resources, such as excessive cash holdings.

Overall, Arcus Biosciences Inc's consistently strong quick ratio reflects a healthy liquidity position, signaling its ability to handle short-term financial obligations effectively.


Peer comparison

Dec 31, 2023