Arcus Biosciences Inc (RCUS)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -340,000 | -280,000 | 54,000 | -124,000 | -88,709 |
| Revenue | US$ in thousands | 117,000 | 112,000 | 382,882 | 77,517 | 15,000 |
| Operating profit margin | -290.60% | -250.00% | 14.10% | -159.96% | -591.39% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $-340,000K ÷ $117,000K
= -290.60%
The operating profit margin of Arcus Biosciences Inc has shown significant fluctuations over the past five years. In 2019, the company reported a concerning operating profit margin of -599.41%, indicating a substantial loss from its operations compared to its revenue. This was followed by a further decline in 2020, with the operating profit margin deteriorating to -161.06%.
However, there was a notable turnaround in 2021 when Arcus Biosciences Inc achieved a positive operating profit margin of 14.17%, signaling an improvement in the company's operational efficiency and profitability. This positive trend, unfortunately, was not sustained, as the operating profit margin reverted back to negative territory in the subsequent years, with -250.00% in 2022 and a significant decline to -290.60% in 2023.
The negative operating profit margins in 2020, 2022, and 2023 may raise concerns about the company's ability to effectively manage its operating expenses and generate profits from its core business activities. It is imperative for Arcus Biosciences Inc to closely examine its cost structure, revenue streams, and overall operational performance to strive for consistent profitability in the future.
Peer comparison
Dec 31, 2023