Arcus Biosciences Inc (RCUS)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -330,000 | -318,000 | -293,000 | -270,000 | -340,000 | -323,000 | -313,000 | -299,000 | -280,000 | 75,019 | 66,883 | 59,747 | 54,000 | -278,796 | -199,108 | -168,347 | -124,000 | -89,750 | -114,551 | -98,336 |
| Interest expense (ttm) | US$ in thousands | 3,000 | 4,000 | 4,000 | 4,000 | 4,000 | 3,000 | 2,535 | 3,046 | 2,437 | 1,697 | 1,162 | 651 | 260 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest coverage | -110.00 | -79.50 | -73.25 | -67.50 | -85.00 | -107.67 | -123.47 | -98.16 | -114.90 | 44.21 | 57.56 | 91.78 | 207.69 | — | — | — | — | — | — | — |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-330,000K ÷ $3,000K
= -110.00
The interest coverage ratio for Arcus Biosciences Inc fluctuated significantly over the observed period, starting positive and then declining into negative territory. It reached a peak of 207.69 in December 2021, indicating a strong ability to cover interest expenses with operating income. However, the ratio deteriorated rapidly from there, turning negative in the subsequent quarters. As of December 2024, the interest coverage ratio stood at -110.00, suggesting the company's operating income was insufficient to cover its interest obligations. This negative trend in interest coverage raises concerns about Arcus Biosciences Inc's financial health and ability to meet its debt obligations.
Peer comparison
Dec 31, 2024