Arcus Biosciences Inc (RCUS)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	-307,000	-267,000	53,000	-123,000	-84,710
Total stockholders’ equity	US$ in thousands	462,000	657,000	842,000	502,000	164,000
ROE		-66.45%	-40.64%	6.29%	-24.50%	-51.65%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-307,000K ÷ $462,000K
= -66.45%

Arcus Biosciences Inc's return on equity (ROE) has experienced significant fluctuations over the past five years.

In 2023, the ROE stands at -66.45%, indicating a negative return in relation to shareholders' equity. This large negative ROE suggests that the company is not generating profitable returns on the equity invested by shareholders.

Similarly, in 2022 and 2019, the ROE was also negative at -40.64% and -51.70% respectively, showing continued struggles in generating returns for shareholders during those years.

In 2021, the ROE improved to 6.28%, turning positive and indicating a modest return on equity for shareholders. This improvement may suggest better profitability and efficiency in the use of equity during that year.

However, in 2020, the ROE reverted to a negative figure of -24.46%, indicating a decline in the efficiency of generating returns on shareholders' equity compared to the previous year.

Overall, the volatile nature of Arcus Biosciences Inc's ROE over the past five years raises concerns about the company's ability to consistently generate returns for shareholders and maintain profitability. Further analysis is recommended to understand the factors driving these fluctuations and to potentially identify areas for improvement.