Arcus Biosciences Inc (RCUS)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,150,000 | 1,095,000 | 1,345,000 | 1,592,000 | 772,292 |
| Total stockholders’ equity | US$ in thousands | 485,000 | 462,000 | 657,000 | 842,000 | 502,000 |
| Financial leverage ratio | 2.37 | 2.37 | 2.05 | 1.89 | 1.54 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,150,000K ÷ $485,000K
= 2.37
The financial leverage ratio of Arcus Biosciences Inc has been increasing steadily over the past five years, indicating a rising level of financial leverage. During the period from December 31, 2020, to December 31, 2024, the ratio has increased from 1.54 to 2.37.
This upward trend suggests that the company is relying more on debt to finance its operations and investments. A higher financial leverage ratio means that a larger portion of the company's assets is funded by debt, which can amplify returns in good times but also increase financial risks during economic downturns.
It is important for stakeholders to closely monitor this ratio as higher levels of leverage can increase the company's vulnerability to economic fluctuations and interest rate changes. Additionally, a higher financial leverage ratio may raise concerns about the company's ability to meet its debt obligations in the long term.
Peer comparison
Dec 31, 2024