Arcus Biosciences Inc (RCUS)

Return on assets (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
Net income (ttm)	US$ in thousands	-307,000	-293,000	-287,000	-279,000	-267,000	79,538	66,563	57,593	53,000	-278,391	-198,594	-167,698	-122,858	-87,603	-111,777	-94,793	-84,710	-80,407	-68,867	-54,310
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
ROA		-28.04%	-24.60%	-23.52%	-22.25%	-19.85%	5.71%	4.51%	3.73%	3.33%	-33.17%	-22.10%	-17.93%	-15.91%	-10.80%	-23.22%	-53.82%	-41.71%	-37.06%	-28.82%	-21.01%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $-307,000K ÷ $1,095,000K
= -28.04%

Arcus Biosciences Inc's return on assets (ROA) has shown a declining trend over the last eight quarters. The company's ROA has been negative for the past five quarters, indicating that the company's net earnings generated from its assets have not been sufficient to cover its asset base. This suggests inefficiency in asset utilization and profitability.

The significant decline in ROA from positive values in Q3 2022 and Q2 2022 to deeply negative values in Q4 2023 indicates a deteriorating financial performance. The most recent ROA of -28.04% in Q4 2023 reflects a substantial decrease in the company's ability to generate profits relative to its total assets, which may raise concerns among investors and creditors.

Overall, the declining trend in ROA for Arcus Biosciences Inc suggests that the company may be facing challenges in effectively managing its assets to generate profits. Investors and stakeholders may need to further investigate the underlying reasons for this trend to assess the company's financial health and sustainability.