Arcus Biosciences Inc (RCUS)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	1,095,000	1,191,000	1,220,000	1,254,000	1,345,000	1,393,820	1,476,770	1,543,430	1,592,000	839,290	898,773	935,119	772,292	811,075	481,389	176,144	203,110	216,957	238,974	258,530
Operating ROA		-31.05%	-27.12%	-25.66%	-23.84%	-20.82%	5.38%	4.53%	3.87%	3.39%	-33.22%	-22.15%	-18.00%	-16.06%	-11.07%	-23.80%	-55.83%	-43.68%	-39.02%	-30.78%	-23.32%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $-340,000K ÷ $1,095,000K
= -31.05%

The operating return on assets (operating ROA) of Arcus Biosciences Inc has shown a declining trend over the past few quarters, indicating a deteriorating performance in generating operating income from its assets. The operating ROA was consistently negative in the most recent quarters, ranging from -31.05% in Q4 2023 to -23.83% in Q1 2023. This suggests that the company's operating income generated from its assets is insufficient to cover its operating expenses and asset base during these periods.

Comparing to the previous year, there was a substantial decrease in operating ROA from positive levels in Q4 2022 (5.43%) to double-digit negative figures in the latest quarters. This significant deterioration may raise concerns about the company's operational efficiency and profitability. Further analysis of the factors contributing to this decline in operating ROA is warranted to understand the underlying issues and assess the company's financial health and performance.