Arcus Biosciences Inc (RCUS)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | -6.84% | 1.79% | 80.12% | 41.36% | -92.04% |
| Operating profit margin | -290.60% | -250.00% | 14.10% | -159.96% | -591.39% |
| Pretax margin | -257.26% | -237.50% | 14.36% | -202.28% | -696.07% |
| Net profit margin | -262.39% | -238.39% | 13.84% | -158.67% | -564.73% |
Arcus Biosciences Inc's profitability ratios paint a concerning picture over the past five years. The gross profit margin has remained stable at 100% throughout the period, indicating that the company is able to generate revenue while keeping its production costs low. However, the operating profit margin and net profit margin have been consistently negative, indicating that the company is incurring operating and net losses.
The operating profit margin has shown significant fluctuations, ranging from -290.60% in 2023 to 14.17% in 2021. This indicates that the company's operating expenses have been significantly impacting its profitability, resulting in erratic performance. The negative pretax and net profit margins further affirm the company's inability to generate profits after accounting for taxes and other expenses.
Overall, Arcus Biosciences Inc's profitability ratios demonstrate a lack of sustainable profitability over the past five years. The company needs to focus on optimizing its cost structure, improving operational efficiency, and increasing revenue generation to achieve profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -31.05% | -20.82% | 3.39% | -16.06% | -43.68% |
| Return on assets (ROA) | -28.04% | -19.85% | 3.33% | -15.93% | -41.71% |
| Return on total capital | -73.59% | -42.62% | 6.41% | -24.70% | -54.09% |
| Return on equity (ROE) | -66.45% | -40.64% | 6.29% | -24.50% | -51.65% |
Arcus Biosciences Inc's profitability ratios show a fluctuating performance over the past five years. The operating return on assets (Operating ROA) has been negative each year, indicating that the company has been generating operating losses relative to its asset base. The trend worsened in 2023 compared to the previous year.
The return on assets (ROA) also demonstrates a negative trend, although less severe than the Operating ROA. This ratio indicates the company's ability to generate profits from its total assets, and the negative values suggest that Arcus Biosciences Inc has been struggling to generate profits overall.
The return on total capital and return on equity (ROE) ratios show similar negative trends over the five-year period. These ratios reflect the company's ability to generate returns for both debt and equity investors. The declining values indicate challenges in generating returns for all capital providers, with the ROE specifically showing the profitability for equity holders.
Overall, the negative values of these profitability ratios for Arcus Biosciences Inc raise concerns about its financial performance and ability to generate sustainable profits. Investors and analysts may view these trends as a sign of financial distress and may seek further insights into the company's operational efficiency and strategic initiatives to improve profitability.