Latest Ratios: P/E Ratio -198.5x · EV/EBITDA N/A · ROE -9.3%. (2017–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $3.2B | $3.7B | $1.7B | $224M | $814M | $1.0B | $1.0B | — | — | — |
| Enterprise Value | $3.2B | $3.7B | $1.7B | $341M | $963M | $1.0B | $943M | — | — | — |
| P/E Ratio → | -198.54 | — | — | — | — | — | — | — | — | — |
| P/S Ratio | 8.58 | 9.82 | 8.57 | 3.76 | 220.96 | — | — | — | — | — |
| P/B Ratio | 17.33 | 19.50 | 10.70 | 2.52 | 3.89 | 3.44 | 3.71 | — | — | — |
| P/FCF | — | — | — | — | — | — | — | — | — | — |
| P/OCF | — | — | — | — | — | — | — | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 9.73 | 8.77 | 5.73 | 261.36 | — | — | — | — | — |
| EV / EBITDA | — | — | — | — | — | — | — | — | — | — |
| EV / EBIT | — | — | — | — | — | — | — | — | — | — |
| EV / FCF | — | — | — | — | — | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 90.2% | 90.2% | 90.3% | 91.6% | 79.5% | — | — | — | — | — |
| Operating Margin | -3.3% | -3.3% | -65.3% | -404.5% | -8183.0% | — | — | — | — | — |
| Net Profit Margin | -4.3% | -4.3% | -71.3% | -439.8% | -8449.8% | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -9.3% | -9.3% | -113.8% | -175.8% | -122.8% | -72.6% | -72.9% | -108.4% | — | — |
| ROA | -4.1% | -4.1% | -40.6% | -66.3% | -72.6% | -58.4% | -67.0% | -53.1% | -70.1% | -130.3% |
| ROIC | -5.2% | -5.2% | -47.8% | -64.0% | -71.2% | -63.5% | -82.3% | — | — | — |
| ROCE | -4.3% | -4.3% | -45.6% | -68.3% | -76.7% | -63.5% | -72.4% | -57.4% | -76.6% | -131.3% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.03 | 0.03 | 0.70 | 2.32 | 0.97 | 0.26 | 0.02 | 0.00 | — | — |
| Debt / EBITDA | — | — | — | — | — | — | — | — | — | — |
| Net Debt / Equity | — | -0.19 | 0.25 | 1.33 | 0.71 | -0.07 | -0.22 | -0.62 | — | — |
| Net Debt / EBITDA | — | — | — | — | — | — | — | — | — | — |
| Debt / FCF | — | — | — | — | — | — | — | — | — | — |
| Interest Coverage | -0.24 | -0.24 | -4.13 | -7.72 | -18.90 | — | — | — | — | — |
Net cash position: cash ($43M) exceeds total debt ($6M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 3.17 | 3.17 | 4.15 | 7.08 | 11.57 | 12.09 | 12.96 | 20.33 | 19.12 | 5.52 |
| Quick Ratio | 2.99 | 2.99 | 3.97 | 6.80 | 11.37 | 12.09 | 12.96 | 20.33 | 19.12 | 5.52 |
| Cash Ratio | 1.70 | 1.70 | 2.81 | 5.83 | 10.83 | 11.66 | 12.58 | 19.34 | 19.06 | 4.94 |
| Asset Turnover | — | 0.87 | 0.56 | 0.17 | 0.01 | — | — | — | — | — |
| Inventory Turnover | 1.62 | 1.62 | 1.32 | 0.38 | 0.10 | — | — | — | — | — |
| Days Sales Outstanding | — | 141.92 | 135.69 | 158.03 | 837.54 | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 |
|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | — | — | — | — | — | — |
| FCF Yield | — | — | — | — | — | — | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — | — |
| Shares Outstanding | — | $127M | $121M | $69M | $55M | $49M | $36M | $38M | $36M | $1M |
Liquidity and dilution risk
As reported in financial statements, Arcutis trades at a price-to-sales multiple of 8.98, a valuation that appears to bake in aggressive long-term growth expectations despite the company's current negative net margins and the significant execution risks inherent in its specialized dermatology commercialization strategy.
The forward P/E of 135.61 suggests that the market is pricing in a rapid transition to profitability, which may be overly optimistic given the historical volatility in operating margins. Investors should monitor whether the current valuation multiple can be sustained if revenue growth decelerates from its recent peak levels.
Based on Arcutis's reported figures, the company's ROIC has fluctuated significantly, reaching a positive 7.3% in 2025Q4 before reverting to -4.2% in 2026Q1, which underscores the difficulty of compounding returns while the business remains in a heavy investment phase for its commercial infrastructure.
The erratic nature of these returns suggests that the company has yet to achieve the scale necessary to generate consistent value for shareholders. Until the core ZORYVE franchise can consistently outpace the high fixed costs of the sales force, ROIC will likely remain volatile and potentially dilutive to long-term capital allocation goals.
According to recent SEC filings, the company's cash conversion cycle has been highly inconsistent, swinging from 53 days in 2024Q4 to 258 days in 2026Q1, reflecting significant operational friction in managing inventory levels and collecting receivables during the rapid scale-up of its product portfolio.
The elevated days inventory outstanding, which reached 276 days in 2026Q1, suggests that the company may be struggling to align production with actual pharmacy fulfillment rates. This inefficiency ties up critical liquidity that could otherwise be used to fund ongoing commercial operations without the need for external financing.
As reported in financial statements, the current ratio has declined from a peak of 9.89 in 2024Q1 to 2.68 in 2026Q1, signaling that the company's liquidity position is tightening as it continues to burn through its remaining cash reserves to support its commercial launch activities.
With cash and equivalents at $42.9M, the company's ability to withstand further operational setbacks or unexpected market shifts appears limited. Investors should monitor the potential for near-term capital raises, as the current liquidity profile may not provide a sufficient buffer for sustained, long-term commercial expansion.
Data from the income statement suggests that the P/S ratio is a frequently misapplied metric for Arcutis, as it obscures the heavy impact of gross-to-net adjustments and co-pay assistance programs that artificially inflate headline revenue figures without reflecting true, sustainable cash-generating demand.
Analysts should instead focus on net price per prescription and the underlying volume of paid claims to gauge the true health of the business. Relying on P/S multiples in this context may lead to an overestimation of the company's commercial success and a failure to account for the high cost of customer acquisition.
Includes 30+ ratios · 9 years · Updated daily
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Quick answers to the most common questions about buying ARQT stock.
Arcutis Biotherapeutics, Inc.'s current P/E ratio is -198.5x. This places it at the 50th percentile of its historical range.
Arcutis Biotherapeutics, Inc.'s return on equity (ROE) is -9.3%. The historical average is -96.5%.
Based on historical data, Arcutis Biotherapeutics, Inc. is trading at a P/E of -198.5x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Arcutis Biotherapeutics, Inc. has 90.2% gross margin and -3.3% operating margin.