Arcus Biosciences Inc (RCUS)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -330,000 | -340,000 | -280,000 | 54,000 | -124,000 |
| Interest expense | US$ in thousands | 2,000 | 2,000 | 2,000 | 260 | — |
| Interest coverage | -165.00 | -170.00 | -140.00 | 207.69 | — |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $-330,000K ÷ $2,000K
= -165.00
Interest coverage ratio is a measure of a company's ability to meet its interest payments on outstanding debt. It is calculated by dividing the earnings before interest and taxes (EBIT) by the interest expense.
For Arcus Biosciences Inc, the interest coverage ratio has varied over the years as follows:
- December 31, 2020: Not provided
- December 31, 2021: 207.69
- December 31, 2022: -140.00
- December 31, 2023: -170.00
- December 31, 2024: -165.00
A positive interest coverage ratio indicates that the company is generating enough operating income to cover its interest obligations. In contrast, a negative ratio like those seen for Arcus Biosciences Inc from 2022 to 2024 suggests that the company's operating income is insufficient to cover its interest expenses. This could potentially raise concerns about the company's financial health and its ability to service its debt.
Peer comparison
Dec 31, 2024