Arcus Biosciences Inc (RCUS)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 1,095,000 | 1,345,000 | 1,592,000 | 772,292 | 203,110 |
| Operating ROA | -31.05% | -20.82% | 3.39% | -16.06% | -43.68% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-340,000K ÷ $1,095,000K
= -31.05%
The operating return on assets (ROA) for Arcus Biosciences Inc has fluctuated significantly over the past five years, as indicated in the table. The company experienced a negative operating ROA in four out of the five years, with the lowest being -44.27% in 2019. This suggests that the company was not efficiently generating profits from its assets during those periods.
In 2021, Arcus Biosciences Inc showed a positive operating ROA of 3.41%, indicating an improvement in its ability to generate operating profits relative to its assets compared to previous years. However, the company's performance declined in 2022 and worsened in 2023 with operating ROA figures of -20.82% and -31.05% respectively.
The negative operating ROA values in 2020, 2019, and 2018 suggest that Arcus Biosciences Inc may have faced operational challenges or inefficiencies during those years, resulting in lower profitability relative to its asset base.
Overall, the trend in Arcus Biosciences Inc operating ROA signals inconsistency and challenges in effectively utilizing its assets to generate operating profits. Management may need to focus on improving operational efficiency and profitability to enhance the company's financial performance in the future.
Peer comparison
Dec 31, 2023