Cytokinetics Inc (CYTK)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — |
| Receivables turnover | 5.87 | 493.07 | 1.04 | 9.02 | 3.92 |
| Payables turnover | 8.07 | 6.95 | 4.72 | 6.56 | 4.85 |
| Working capital turnover | 0.01 | 0.10 | 0.12 | 0.09 | 0.10 |
The activity ratios for Cytokinetics Inc provide insights into the efficiency of the company's operations in managing its inventory, receivables, payables, and working capital over the past five years.
1. Inventory Turnover: Unfortunately, the data for inventory turnover is not provided, making it impossible to evaluate how efficiently Cytokinetics Inc is managing its inventory levels.
2. Receivables Turnover: The receivables turnover ratio indicates how many times a company collects its accounts receivables during a period. Cytokinetics Inc's receivables turnover has fluctuated significantly over the years, from 643.46 in 2022 to 1.36 in 2021. The sharp drop in 2022 suggests a potential issue with collecting receivables efficiently, but the 2023 figure of 5.87 shows improvement.
3. Payables Turnover: The data indicates a payables turnover ratio of 0.00 for all years, suggesting that Cytokinetics Inc does not have a significant reliance on trade credit from suppliers, or the company may be paying its payables very quickly.
4. Working Capital Turnover: The working capital turnover ratio assesses how effectively a company is utilizing its working capital to generate sales revenue. Cytokinetics Inc's working capital turnover has been consistently low over the years, with a maximum of 0.15 in 2021 and a minimum of 0.01 in 2023. This implies that the company may not be efficiently using its working capital to generate sales.
In conclusion, the analysis of Cytokinetics Inc's activity ratios highlights areas of concern, such as fluctuations in receivables turnover and consistently low working capital turnover. The company should focus on improving its efficiency in managing receivables and working capital to enhance overall operational performance and financial stability.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 62.19 | 0.74 | 350.34 | 40.47 | 93.08 |
| Number of days of payables | days | 45.22 | 52.52 | 77.27 | 55.63 | 75.19 |
Based on the provided data, we can analyze Cytokinetics Inc's activity ratios:
1. Days of Sales Outstanding (DSO):
- In 2023, the DSO is 62.19 days, indicating that on average, it takes the company 62.19 days to collect its accounts receivables.
- In 2022, the DSO was significantly lower at 0.57 days, implying a very efficient collection process.
- In 2021, the DSO spiked to 268.56 days, which suggests a potential issue with collecting accounts receivables.
- In 2020, the DSO was 28.90 days, showing a relatively stable collection period.
- In 2019, the DSO was 70.14 days, indicating a longer collection period compared to 2020.
2. Days of Inventory on Hand (DOH):
- The data for Days of Inventory on Hand is missing across all reported years, making it challenging to assess the efficiency of inventory management.
3. Number of Days of Payables:
- The information regarding the Days of Payables is not provided, so we are unable to evaluate the company's payment practices and liquidity position from the perspective of accounts payables.
In conclusion, Cytokinetics Inc's Days of Sales Outstanding ratio has shown fluctuations over the years, with 2023 marking an increase in the collection period compared to 2022 and 2020 but an improvement from 2021. The absence of data on Days of Inventory on Hand and Days of Payables limits the comprehensive assessment of the company's overall operating efficiency and cash flow management.
See also:
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 0.11 | 0.90 | 0.74 | 2.99 | 4.47 |
| Total asset turnover | 0.01 | 0.07 | 0.06 | 0.07 | 0.07 |
The fixed asset turnover measures how efficiently a company utilizes its fixed assets to generate revenue. Cytokinetics Inc's fixed asset turnover has shown a decreasing trend over the past five years, indicating a decline in the efficiency of generating revenue from its fixed assets. In 2023, the fixed asset turnover was 0.11, significantly lower than the previous year's ratio of 1.18. This decline suggests that Cytokinetics Inc may not be effectively utilizing its fixed assets to generate sales.
Total asset turnover measures how effectively a company uses its total assets to generate revenue. Cytokinetics Inc's total asset turnover has also displayed a decreasing trend over the past five years, with the ratio dropping to 0.01 in 2023 from 0.09 in 2022. This indicates a decline in the efficiency of generating revenue from the company's total assets. A low total asset turnover may suggest that Cytokinetics Inc is not efficiently utilizing its assets to generate sales, potentially leading to lower profitability and returns for the company.