Cytek Biosciences Inc (CTKB)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | — |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | — |
| Financial leverage ratio | 1.26 | 1.26 | 1.22 | 1.14 | — |
Cytek Biosciences Inc demonstrates strong solvency ratios, as indicated by its consistently low debt-to-assets, debt-to-capital, and debt-to-equity ratios of 0.00 from 2020 to 2024. These ratios suggest that the company relies minimally on debt to finance its operations and investments. Additionally, the financial leverage ratio increased slightly from 1.14 in 2021 to 1.26 in 2023 and 2024. This indicates that while the company's use of debt in its capital structure has increased marginally, it remains at a reasonable level relative to its equity.
Overall, Cytek Biosciences Inc's strong solvency ratios reflect a healthy financial position with a conservative approach to debt management, which may reduce financial risk and enhance the company's ability to weather economic downturns or unexpected challenges.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 0.00 | -6.59 | 1.49 | 5.26 | 44.33 |
The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. A higher ratio indicates a better ability to meet interest obligations. Analyzing the interest coverage ratios of Cytek Biosciences Inc from 2020 to 2024, we observe a significant decline in performance over the years.
As of December 31, 2020, Cytek Biosciences Inc had a robust interest coverage ratio of 44.33, indicating a strong ability to cover its interest expenses. However, by December 31, 2021, the ratio had decreased to 5.26, suggesting a slight weakening in its ability to pay interest.
The financial health of the company deteriorated further in the following years, evidenced by the interest coverage ratios of 1.49 as of December 31, 2022, -6.59 as of December 31, 2023, and 0.00 as of December 31, 2024. A ratio below 1 indicates that the company is not generating enough operating income to meet interest payments, which could raise concerns about its financial solvency.
Overall, the declining trend in Cytek Biosciences Inc's interest coverage ratios implies increasing financial risk and a potential strain on its ability to meet debt obligations with available earnings. Investors and creditors should closely monitor the company's financial position and management of debt levels to mitigate potential risks associated with its liquidity and financial stability.