Arcus Biosciences Inc (RCUS)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	-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	-88,709	-84,666	-73,562	-60,301
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
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
Return on total capital		-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%	-54.09%	-47.77%	-37.41%	-27.22%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-340,000K ÷ ($—K + $462,000K)
= -73.59%

Arcus Biosciences Inc's return on total capital has been fluctuating over the past eight quarters. The return on total capital was negative in all quarters, with values ranging from -49.80% to -73.59%. The negative values indicate that the company is not generating sufficient returns from its invested capital.

It is worth noting that the return on total capital has been on a declining trend, with the most recent quarter showing the lowest return. This trend suggests potential inefficiencies in the company's capital utilization or operating performance.

Overall, the consistently negative return on total capital for Arcus Biosciences Inc raises concerns about the company's ability to generate adequate returns for its investors and stakeholders. Further analysis of the company's operational and financial strategies may be necessary to address these challenges.