Arcus Biosciences Inc (RCUS)

Financial leverage ratio

		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
Total assets	US$ in thousands	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	203,110	216,957	238,974	258,530
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
Financial leverage ratio		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	1.24	1.22	1.22	1.17

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 been gradually increasing over the past eight quarters, indicating a rising level of financial leverage. The ratio stood at 2.37 in Q4 2023, up from 2.29 in Q3 2023 and significantly higher compared to 1.94 in Q1 2022. This suggests that the company has been relying more on debt to finance its operations and growth. A higher financial leverage ratio indicates a higher proportion of debt in the company's capital structure, which can amplify returns during profitable times but also increase financial risk, especially during economic downturns. It is important for investors and stakeholders to closely monitor changes in the financial leverage ratio to assess the company's financial health and risk profile.