Arcus Biosciences Inc (RCUS)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 1,150,000 | 1,095,000 | 1,345,000 | 1,592,000 | 772,292 |
| Operating ROA | -28.70% | -31.05% | -20.82% | 3.39% | -16.06% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $-330,000K ÷ $1,150,000K
= -28.70%
Arcus Biosciences Inc's operating return on assets (Operating ROA) has exhibited variability over the past five years. In December 31, 2020, the Operating ROA was negative at -16.06%, indicating that the company was not effectively generating operating profits relative to its assets. However, there was an improvement in December 31, 2021, with the Operating ROA increasing to 3.39%, suggesting a more efficient utilization of assets to generate operating income.
Unfortunately, this positive trend did not continue, as the Operating ROA deteriorated significantly in the subsequent years. In December 31, 2022, the Operating ROA was -20.82%, signifying that the company experienced a decline in operating profitability relative to its asset base. This downward trend persisted in December 31, 2023, and December 31, 2024, with Operating ROA values of -31.05% and -28.70% respectively.
Overall, the fluctuating performance of Arcus Biosciences Inc's Operating ROA highlights the importance of closely monitoring operational efficiency and asset management to sustainably improve profitability and value creation for the company.
Peer comparison
Dec 31, 2024