Arcus Biosciences Inc (RCUS)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -330,000 | -340,000 | -280,000 | 54,000 | -124,000 |
| Revenue | US$ in thousands | 258,000 | 117,000 | 112,000 | 382,882 | 77,517 |
| Operating profit margin | -127.91% | -290.60% | -250.00% | 14.10% | -159.96% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $-330,000K ÷ $258,000K
= -127.91%
Operating profit margin is a key efficiency ratio that indicates the company's ability to generate profit from its core operations. Looking at the data provided for Arcus Biosciences Inc, the operating profit margin has experienced significant fluctuations over the years.
In December 2020, the operating profit margin was at a negative 159.96%, indicating that the company's operating expenses exceeded its operating income drastically. However, by December 2021, there was a notable improvement as the operating profit margin increased to 14.10%, showing that the company was able to generate a profit from its day-to-day operations.
Unfortunately, in the following years, Arcus Biosciences Inc faced challenges as the operating profit margin turned negative again, reaching -250.00% in December 2022, -290.60% in December 2023, and -127.91% in December 2024. These negative figures suggest that the company's operating expenses continued to outpace its operating income during those periods, potentially indicating inefficiencies in cost management or a decline in revenue generation.
Overall, the fluctuating operating profit margin for Arcus Biosciences Inc demonstrates the company's varying ability to control costs and generate profits from its core operations. It may be essential for the company to focus on improving operational efficiency and cost management to achieve sustainable profitability in the future.
Peer comparison
Dec 31, 2024