Arcus Biosciences Inc (RCUS)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 41.86% | -6.84% | 1.79% | 80.12% | 41.36% |
| Operating profit margin | -127.91% | -290.60% | -250.00% | 14.10% | -159.96% |
| Pretax margin | -109.30% | -257.26% | -237.50% | 14.36% | -202.28% |
| Net profit margin | -109.69% | -262.39% | -238.39% | 13.84% | -158.67% |
Arcus Biosciences Inc's profitability ratios have shown fluctuations over the years. The gross profit margin improved significantly from 2020 to 2021, reaching 80.12%, but then sharply declined in 2022 and 2023, turning negative. However, there was a recovery in 2024, with a gross profit margin of 41.86%.
In terms of operating profit margin, the company had a negative margin in 2020, but it turned positive in 2021 at 14.10%. Subsequently, the operating profit margin deteriorated in the following years, with significant negative values recorded up to 2024.
Similarly, the pretax margin and net profit margin followed a similar trend as the operating profit margin, with improvements in 2021 followed by negative margins in the subsequent years, indicating challenges in generating profits after accounting for operating and tax expenses.
Overall, the company's profitability was volatile during the analyzed period, with some improvements but also significant downturns in the profit margins. This suggests potential operational and financial challenges that may require management's attention to enhance profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -28.70% | -31.05% | -20.82% | 3.39% | -16.06% |
| Return on assets (ROA) | -24.61% | -28.04% | -19.85% | 3.33% | -15.93% |
| Return on total capital | -68.04% | -73.59% | -42.62% | 6.41% | -24.70% |
| Return on equity (ROE) | -58.35% | -66.45% | -40.64% | 6.29% | -24.50% |
Arcus Biosciences Inc's profitability ratios have displayed varying trends over the past five years.
1. Operating Return on Assets (Operating ROA) fluctuated significantly from -16.06% in 2020 to a positive 3.39% in 2021, before declining to -20.82% in 2022, -31.05% in 2023, and -28.70% in 2024. These fluctuations suggest fluctuations in the company's operational efficiency in generating profit from its assets.
2. Return on Assets (ROA) also followed a similar trend starting at -15.93% in 2020, improving to 3.33% in 2021, then declining in subsequent years to -19.85% in 2022, -28.04% in 2023, and -24.61% in 2024. The negative ROA indicates that the company's net income generated from its total assets was consistently lower than the asset base.
3. Return on Total Capital experienced a similar trend, starting at -24.70% in 2020, increasing to 6.41% in 2021, but then decreasing to -42.62% in 2022, -73.59% in 2023, and -68.04% in 2024. This ratio reflects the company's ability to generate returns for both equity and debt holders on the total invested capital.
4. Return on Equity (ROE) also showed a pattern of improvement from -24.50% in 2020 to 6.29% in 2021, but then declining in subsequent years to -40.64% in 2022, -66.45% in 2023, and -58.35% in 2024. ROE indicates the profitability of the company from the perspective of its shareholders.
Overall, the declining trends in these profitability ratios suggest challenges faced by Arcus Biosciences Inc in generating profits from its assets, capital, and equity over the five-year period. Additional analysis would be required to understand the underlying reasons for these trends and to identify potential strategies for improvement.