Arcus Biosciences Inc (RCUS)

Operating profit margin

		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
Operating income (ttm)	US$ in thousands	-340,000	-323,000	-313,000	-299,000	-280,000	75,019	66,883	59,747	54,000	-278,796	-199,108	-168,347	-124,000	-89,750	-114,551	-98,336	-88,709	-84,666	-73,562	-60,301
Revenue (ttm)	US$ in thousands	117,000	119,355	121,236	118,995	112,000	433,144	408,724	399,137	398,304	53,292	108,361	92,939	77,517	77,780	15,000	15,000	15,000	6,812	9,353	8,853
Operating profit margin		-290.60%	-270.62%	-258.17%	-251.27%	-250.00%	17.32%	16.36%	14.97%	13.56%	-523.15%	-183.75%	-181.14%	-159.96%	-115.39%	-763.67%	-655.57%	-591.39%	-1,242.89%	-786.51%	-681.14%

December 31, 2023 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $-340,000K ÷ $117,000K
= -290.60%

Arcus Biosciences Inc's operating profit margin has shown a downward trend over the past eight quarters, with negative margins recorded in the last five quarters. The margins have deteriorated significantly, reaching as low as -290.60% in Q4 2023. This indicates that the company's operating expenses have exceeded its revenues, resulting in substantial operating losses. Such persistent negative margins raise concerns about the company's operational efficiency and ability to generate profits from its core business activities. Additionally, the contrast between negative margins in recent quarters and positive margins seen in Q3 and Q2 of 2022 suggests a sudden and dramatic decline in profitability. Investors and stakeholders may view this trend as a red flag and seek further insights into the company's cost structure and revenue generation capabilities.