Arcus Biosciences Inc (RCUS)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	462,000	520,000	566,000	600,000	657,000	699,000	747,000	797,000	842,000	542,607	604,555	664,790	502,000	544,417	428,710	140,638	164,000	177,227	196,646	221,567
ROE		-66.45%	-56.35%	-50.71%	-46.50%	-40.64%	11.38%	8.91%	7.23%	6.29%	-51.31%	-32.85%	-25.23%	-24.47%	-16.09%	-26.07%	-67.40%	-51.65%	-45.37%	-35.02%	-24.51%

December 31, 2023 calculation

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

Arcus Biosciences Inc's return on equity (ROE) has displayed a declining trend over the past quarters, reflecting a decrease in the company's profitability in relation to shareholders' equity. The negative ROE figures indicate that the company is generating losses relative to its equity base during these quarters. This can be a cause for concern as it suggests that the company's ability to generate profits from the shareholders' investments has been weakening.

The significant drop in ROE from positive figures in Q2 and Q3 2022 to consistently negative figures in subsequent quarters is alarming. It indicates a notable deterioration in the company's financial performance and efficiency in utilizing shareholder equity to generate returns.

Investors and stakeholders may closely monitor Arcus Biosciences Inc's future financial results and management strategies to address the decline in ROE and improve the company's profitability and value creation for shareholders.