Arcus Biosciences Inc (RCUS)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -340,000 | -280,000 | 54,000 | -124,000 | -88,709 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 462,000 | 657,000 | 842,000 | 502,000 | 164,000 |
| Return on total capital | -73.59% | -42.62% | 6.41% | -24.70% | -54.09% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-340,000K ÷ ($—K + $462,000K)
= -73.59%
Arcus Biosciences Inc's return on total capital has shown significant fluctuations over the past five years, ranging from a high of 6.45% in 2021 to a low of -73.59% in 2023. This indicates that the company has struggled to effectively generate returns compared to the total capital invested in its operations. The negative returns in 2020, 2019, and 2023 are concerning as they suggest that the company may not be efficiently allocating its capital to generate profits. The positive return in 2021 is a positive sign, showing some improvement in the company's ability to utilize its capital effectively. Overall, Arcus Biosciences Inc's return on total capital trend indicates a need for the company to focus on optimizing its capital allocation strategies to improve profitability and investor returns.
Peer comparison
Dec 31, 2023