Here's Why We're Not Too Worried About Arcus Biosciences' (NYSE:RCUS) Cash Burn Situation
Here's Why We're Not Too Worried About Arcus Biosciences' (NYSE:RCUS) Cash Burn Situation
There's no doubt that money can be made by owning shares of unprofitable businesses. For example, although Amazon.com made losses for many years after listing, if you had bought and held the shares since 1999, you would have made a fortune. Nonetheless, only a fool would ignore the risk that a loss making company burns through its cash too quickly.
毫無疑問,擁有無利可圖的企業的股份可以賺錢。例如,儘管Amazon.com在上市後多年虧損,但如果您自1999年以來一直買入並持有股票,您本來可以發大財。儘管如此,只有傻瓜才會忽視虧損公司過快耗盡現金的風險。
Given this risk, we thought we'd take a look at whether Arcus Biosciences (NYSE:RCUS) shareholders should be worried about its cash burn. In this article, we define cash burn as its annual (negative) free cash flow, which is the amount of money a company spends each year to fund its growth. Let's start with an examination of the business' cash, relative to its cash burn.
鑑於這種風險,我們想看看Arcus Biosciences(紐約證券交易所代碼:RCUS)的股東是否應該擔心其現金消耗。在本文中,我們將現金消耗定義爲其年度(負)自由現金流,即公司每年爲其增長提供資金的金額。讓我們首先檢查一下企業的現金與其現金消耗的關係。
When Might Arcus Biosciences Run Out Of Money?
Arcus Biosciences 什麼時候會沒錢?
A company's cash runway is the amount of time it would take to burn through its cash reserves at its current cash burn rate. When Arcus Biosciences last reported its balance sheet in September 2023, it had zero debt and cash worth US$799m. In the last year, its cash burn was US$306m. So it had a cash runway of about 2.6 years from September 2023. Arguably, that's a prudent and sensible length of runway to have. Depicted below, you can see how its cash holdings have changed over time.
公司的現金流是指以當前的現金消耗率消耗現金儲備所需的時間。當Arcus Biosciences上次於2023年9月公佈其資產負債表時,其負債爲零,現金價值7.99億美元。去年,其現金消耗爲3.06億美元。因此,從2023年9月起,它的現金流約爲2.6年。可以說,這是一條審慎而合理的跑道長度。如下所示,您可以看到其現金持有量隨着時間的推移而發生了怎樣的變化。
![debt-equity-history-analysis](https://usnewsfile.moomoo.com/public/MM-PersistNewsContentImage/7781/20240213/0-f169fb36ea28b2859aa6568ea5c034bd-0-40160bdd309dce1fd0612ce578556666.png/big)
Is Arcus Biosciences' Revenue Growing?
Arcus Biosciences 的收入在增長嗎?
We're hesitant to extrapolate on the recent trend to assess its cash burn, because Arcus Biosciences actually had positive free cash flow last year, so operating revenue growth is probably our best bet to measure, right now. The harsh truth is that operating revenue dropped 72% in the last year, which is quite problematic for a cash burning company. While the past is always worth studying, it is the future that matters most of all. So you might want to take a peek at how much the company is expected to grow in the next few years.
我們不願推斷最近的趨勢來評估其現金消耗,因爲Arcus Biosciences去年的自由現金流實際上爲正,因此營業收入增長可能是我們目前衡量的最佳選擇。嚴酷的事實是,去年的營業收入下降了72%,這對於一家現金消耗公司來說是相當成問題的。雖然過去總是值得研究的,但最重要的是未來。因此,你可能想看看該公司在未來幾年預計將增長多少。
How Easily Can Arcus Biosciences Raise Cash?
Arcus Biosciences 可以多容易地籌集資金?
Given its problematic fall in revenue, Arcus Biosciences shareholders should consider how the company could fund its growth, if it turns out it needs more cash. Issuing new shares, or taking on debt, are the most common ways for a listed company to raise more money for its business. Commonly, a business will sell new shares in itself to raise cash and drive growth. By looking at a company's cash burn relative to its market capitalisation, we gain insight on how much shareholders would be diluted if the company needed to raise enough cash to cover another year's cash burn.
鑑於Arcus Biosciences的收入下降存在問題,如果事實證明該公司需要更多現金,則應考慮如何爲其增長提供資金。發行新股或承擔債務是上市公司爲其業務籌集更多資金的最常見方式。通常,企業會自行出售新股以籌集現金和推動增長。通過觀察公司相對於其市值的現金消耗,我們可以深入了解如果公司需要籌集足夠的現金來彌補下一年的現金消耗,股東會被稀釋多少。
Arcus Biosciences has a market capitalisation of US$1.5b and burnt through US$306m last year, which is 20% of the company's market value. That's fairly notable cash burn, so if the company had to sell shares to cover the cost of another year's operations, shareholders would suffer some costly dilution.
Arcus Biosciences的市值爲15億美元,去年耗資3.06億美元,佔該公司市值的20%。這是相當明顯的現金消耗,因此,如果公司不得不出售股票來支付下一年的運營成本,股東將遭受一些代價高昂的稀釋。
Is Arcus Biosciences' Cash Burn A Worry?
Arcus Biosciences 的現金消耗令人擔憂嗎?
Even though its falling revenue makes us a little nervous, we are compelled to mention that we thought Arcus Biosciences' cash runway was relatively promising. While we're the kind of investors who are always a bit concerned about the risks involved with cash burning companies, the metrics we have discussed in this article leave us relatively comfortable about Arcus Biosciences' situation. An in-depth examination of risks revealed 2 warning signs for Arcus Biosciences that readers should think about before committing capital to this stock.
儘管收入的下降使我們有些緊張,但我們不得不提到,我們認爲Arcus Biosciences的現金流相對樂觀。雖然我們是那種總是有點擔心現金消耗公司所涉及的風險的投資者,但我們在本文中討論的指標使我們對Arcus Biosciences的情況相對滿意。對風險的深入研究顯示,Arcus Biosciences有兩個警告信號,讀者在向該股投入資金之前應考慮這些信號。
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies, and this list of stocks growth stocks (according to analyst forecasts)
當然,通過尋找其他地方,你可能會找到一筆不錯的投資。因此,來看看這份免費的有趣公司名單以及這份成長型股票清單(根據分析師的預測)
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Simply Wall St的這篇文章本質上是籠統的。我們僅使用公正的方法根據歷史數據和分析師的預測提供評論,我們的文章無意作爲財務建議。它不構成買入或賣出任何股票的建議,也沒有考慮到您的目標或財務狀況。我們的目標是爲您提供由基本數據驅動的長期重點分析。請注意,我們的分析可能不考慮最新的價格敏感型公司公告或定性材料。簡而言之,華爾街沒有持有任何上述股票的頭寸。