Arcus Biosciences Inc (RCUS)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
The solvency ratios of Arcus Biosciences Inc, including the Debt-to-assets ratio, Debt-to-capital ratio, Debt-to-equity ratio, and Financial leverage ratio, indicate a consistently low level of debt relative to its assets, capital, and equity over the reported periods, ranging from March 31, 2020, to December 31, 2024.
The Debt-to-assets ratio remained at 0.00 throughout the period, suggesting that the company's total debt was negligible compared to its total assets, indicating a low risk of insolvency related to debt obligations.
Similarly, the Debt-to-capital ratio and Debt-to-equity ratio also remained stable at 0.00 during the same period, implying that the company's debt levels were well-controlled concerning its total capital and equity. This indicates a healthy financial structure and a low dependency on debt financing.
The Financial leverage ratio, which measures the extent of a company's reliance on debt financing, fluctuated within a moderate range between 1.12 and 2.37 during the period. The ratio increased gradually over time, indicating a slight increase in leverage and financial risk, particularly towards the end of the period in 2024.
Overall, the solvency ratios suggest that Arcus Biosciences Inc maintained a conservative financial strategy with minimal debt exposure, ensuring a strong financial position and lower solvency risk during the analyzed period.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | — | — | — | — | — | — | — |
The interest coverage ratio for Arcus Biosciences Inc has shown significant fluctuations over the period from March 31, 2020, to December 31, 2024. During this period, the interest coverage ratio ranged from a high of 207.69 on December 31, 2021, to a low of -123.47 on June 30, 2023, indicating notable volatility in the company's ability to cover its interest expenses.
Generally, an interest coverage ratio below 1 indicates that a company is not generating sufficient earnings to cover its interest payments, which could be a cause for concern as it suggests financial distress. In Arcus Biosciences Inc's case, the negative values recorded for several periods indicate a potential inability to cover interest expenses using operating income.
The trend of declining interest coverage ratios from positive to negative values raises questions about the company's financial stability and ability to meet its debt obligations. Investors and creditors may view this trend as a red flag, signaling a higher risk of default on debt payments.
It is essential for Arcus Biosciences Inc to closely monitor its interest coverage ratio, improve profitability, and manage its debt levels to ensure financial health and sustainability in the long term.