Arcus Biosciences Inc (RCUS)

Financial leverage ratio

		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
Total assets	US$ in thousands	1,150,000	1,252,000	1,186,000	1,293,000	1,095,000	1,191,000	1,220,000	1,254,000	1,345,000	1,393,820	1,476,770	1,543,430	1,592,000	839,290	898,773	935,119	772,292	811,075	481,389	176,144
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
Financial leverage ratio		2.37	2.22	1.87	1.83	2.37	2.29	2.16	2.09	2.05	1.99	1.98	1.94	1.89	1.55	1.49	1.41	1.54	1.49	1.12	1.25

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 shown fluctuations over the years. It increased steadily from 1.25 as of March 31, 2020, to 2.37 as of December 31, 2024, signifying an increasing reliance on debt to finance its operations.

There were some periods of stability in the ratio, such as between June 30, 2021, and September 30, 2022, where the ratio hovered around the 1.49 to 1.55 range. However, the ratio started to increase significantly from September 30, 2022, reaching its peak at 2.37 as of December 31, 2024.

The rise in the financial leverage ratio indicates that Arcus Biosciences Inc has been utilizing more debt in proportion to equity which could potentially increase financial risk but may also signify strategic expansion or investment activities. It would be important to monitor this trend closely to assess the company's ability to manage its debt levels effectively and sustain its financial health in the long term.