Arcus Biosciences Inc (RCUS)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,095,000 | 1,345,000 | 1,592,000 | 772,292 | 203,110 |
| Total stockholders’ equity | US$ in thousands | 462,000 | 657,000 | 842,000 | 502,000 | 164,000 |
| Financial leverage ratio | 2.37 | 2.05 | 1.89 | 1.54 | 1.24 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,095,000K ÷ $462,000K
= 2.37
The financial leverage ratio of Arcus Biosciences Inc has shown an increasing trend over the past five years, indicating a rise in the company's reliance on debt financing relative to equity. The ratio stood at 2.37 as of December 31, 2023, compared to 2.05 in 2022, 1.89 in 2021, 1.54 in 2020, and 1.24 in 2019. This suggests that the company has been gradually taking on more debt to fund its operations and investments. A higher financial leverage ratio can amplify returns for shareholders in favorable market conditions but also increase the risk of financial distress during economic downturns. Investors and analysts should closely monitor the company's debt levels and repayment capabilities to assess its financial stability and risk profile.
Peer comparison
Dec 31, 2023