Cytek Biosciences Inc (CTKB)

Cytek Biosciences Inc has consistently maintained a debt-free capital structure over the past three years, as indicated by its Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio of 0.00 for each year. This suggests that the company has not relied on external borrowing to finance its operations or expansion.

However, it is important to note that the Financial leverage ratio has shown an increasing trend over the same period, rising from 1.14 in 2021 to 1.22 in 2022, and further to 1.26 in 2023. This indicates that the company's level of financial leverage has increased, implying a higher proportion of assets is funded through debt.

While a higher financial leverage ratio can potentially amplify returns for shareholders, it also brings added financial risk as the company becomes more leveraged. Cytek Biosciences Inc may need to closely monitor its debt levels and ensure that it can service its obligations effectively to maintain its solvency and financial stability in the long term.

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Coverage ratios

The interest coverage ratio measures a company's ability to meet its interest obligations with its earnings. A higher interest coverage ratio indicates a stronger ability to cover interest expenses.

In the case of Cytek Biosciences Inc, the interest coverage ratio has been volatile over the past three years. In 2021, the ratio was 4.41, indicating that the company was able to cover its interest expenses 4.41 times over. This suggests a healthy ability to meet interest obligations using earnings.

However, in 2022, the interest coverage ratio dropped to 1.49, which could be a cause for concern as it indicates a decrease in the company's ability to cover interest expenses with earnings.

The most recent data for 2023 shows a concerning trend with an interest coverage ratio of -6.59. A negative interest coverage ratio implies that the company's earnings are insufficient to cover its interest expenses, raising red flags regarding its financial health and sustainability.

Overall, Cytek Biosciences Inc's interest coverage ratio has deteriorated significantly over the three-year period, with the latest figure indicating a potential financial distress situation. It would be advisable for stakeholders and investors to further investigate the company's financial circumstances and strategies to address its declining interest coverage.