Cytokinetics Inc (CYTK)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | 0.02 | 0.01 | 0.13 | 0.15 | 0.13 |
Cytokinetics Inc's activity ratios provide insights into the efficiency of the company's management in utilizing its assets and managing its working capital.
1. Inventory Turnover: The inventory turnover ratio measures how effectively a company manages its inventory by assessing how many times a company sells and replaces its inventory during a period. As the data shows that there were no specific figures for inventory turnover provided, it indicates a lack of visibility into this aspect of the company's operations over the specified years.
2. Receivables Turnover: The receivables turnover ratio evaluates how efficient a company is in collecting payments from its customers. In this case, the absence of figures for receivables turnover suggests a lack of information on the company's effectiveness in managing its accounts receivable during the stated years.
3. Payables Turnover: The payables turnover ratio measures how quickly a company pays its suppliers. Similarly, the missing data for payables turnover indicates a lack of information regarding the company's payables management efficiency over the specified years.
4. Working Capital Turnover: The working capital turnover ratio evaluates how efficiently a company utilizes its working capital to generate sales revenue. In the provided data, we observe varying figures for working capital turnover over the years, with the ratio ranging from 0.01 to 0.15. These numbers suggest fluctuations in the company's ability to generate sales revenue from its working capital investment, with a decline in efficiency observed in the later years.
Overall, the lack of specific data for inventory turnover, receivables turnover, and payables turnover limits the comprehensive assessment of Cytokinetics Inc's activity ratios. However, the available information on the working capital turnover ratio indicates fluctuations in the company's efficiency in utilizing its working capital to drive sales revenue over the specified years.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
Based on the provided data for Cytokinetics Inc, the activity ratios are as follows:
1. Days of Inventory on Hand (DOH): The DOH ratio for Cytokinetics Inc is not available for the years 2020 to 2024. This ratio measures the number of days a company takes to sell its average inventory. A lower DOH indicates efficient inventory management.
2. Days of Sales Outstanding (DSO): The DSO ratio for Cytokinetics Inc is not provided for the years 2020 to 2024. This ratio reflects the average number of days it takes a company to collect revenue after a sale is made. A lower DSO signifies efficient accounts receivable management.
3. Number of Days of Payables: The number of days of payables ratio is also not available for the years 2020 to 2024. This ratio measures the average number of days a company takes to pay its suppliers. A higher number of days of payables can indicate favorable payment terms with suppliers.
Without specific values for these activity ratios, it is challenging to assess Cytokinetics Inc's efficiency in managing inventory, collecting receivables, and paying payables over the specified years. Monitoring and analyzing these ratios can provide valuable insights into the company's operational performance and financial health.
See also:
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 1.18 | 0.96 | 4.18 |
| Total asset turnover | 0.01 | 0.01 | 0.09 | 0.08 | 0.10 |
The fixed asset turnover ratio measures the efficiency of a company in generating sales from its fixed assets. An increasing trend in this ratio is generally favorable, indicating that the company is utilizing its fixed assets more effectively to generate revenue.
In the case of Cytokinetics Inc, the fixed asset turnover ratio declined from 4.18 in 2020 to 0.96 in 2021, indicating a significant decrease in the efficiency of utilizing fixed assets to generate revenue. However, there was a slight improvement in 2022, with the ratio increasing to 1.18. The absence of data for 2023 and 2024 makes it difficult to assess the trend accurately, but the declining ratio in prior years raises some concerns about the company's fixed asset utilization efficiency.
Total asset turnover ratio shows how efficiently a company is generating sales from its total assets without specifying whether they are fixed or not. A higher total asset turnover ratio is generally preferred, indicating that the company is better at utilizing its total assets to generate revenue.
For Cytokinetics Inc, the total asset turnover ratio decreased from 0.10 in 2020 to 0.08 in 2021 and then slightly increased to 0.09 in 2022. The sharp decrease to 0.01 in both 2023 and 2024 is a significant cause for concern as it suggests a substantial decline in the company's ability to generate sales from its total assets.
Overall, the decline in both fixed asset turnover and total asset turnover ratios over the years, especially in 2023 and 2024, indicates potential inefficiencies in asset utilization at Cytokinetics Inc. Further investigation into the company's operations and asset management strategies may be warranted to address these declining trends and improve long-term performance.