Arcus Biosciences Inc (RCUS)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -330,000 | -318,000 | -293,000 | -270,000 | -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 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 485,000 | 565,000 | 635,000 | 707,000 | 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 |
| Return on total capital | -68.04% | -56.28% | -46.14% | -38.19% | -73.59% | -62.12% | -55.30% | -49.83% | -42.62% | 10.73% | 8.95% | 7.50% | 6.41% | -51.38% | -32.93% | -25.32% | -24.70% | -16.49% | -26.72% | -69.92% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-330,000K ÷ ($—K + $485,000K)
= -68.04%
Arcus Biosciences Inc's return on total capital has exhibited significant fluctuations over the period from March 31, 2020, to December 31, 2024. The company's return on total capital started at a low of -69.92% on March 31, 2020, improved to -24.70% by December 31, 2020, and turned positive at 6.41% by the end of December 31, 2021. However, the positive trend did not continue as the return on total capital decreased to -73.59% by the end of December 31, 2023, and remained negative at -68.04% by December 31, 2024.
The fluctuations in Arcus Biosciences Inc's return on total capital indicate potential challenges in effectively utilizing its total capital to generate returns for shareholders. The company should focus on improving operational efficiency and capital allocation strategies to enhance its return on total capital and drive sustainable value creation over the long term.
Peer comparison
Dec 31, 2024