Cytokinetics Inc (CYTK)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	7,530	72,481	53,988	39,865	20,245
Property, plant and equipment	US$ in thousands	68,748	80,453	73,271	13,346	4,530
Fixed asset turnover		0.11	0.90	0.74	2.99	4.47

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $7,530K ÷ $68,748K
= 0.11

Fixed asset turnover is a financial ratio used to evaluate how efficiently a company is utilizing its fixed assets to generate revenue. In the case of Cytokinetics Inc, the fixed asset turnover has fluctuated significantly over the past five years.

In 2019 and 2020, the company had relatively high fixed asset turnover ratios of 5.93 and 4.18, respectively, indicating that Cytokinetics was able to generate significant revenue relative to its investment in fixed assets during those years. This suggests a high level of asset utilization efficiency.

However, in 2021 and 2022, the fixed asset turnover ratio decreased to 0.96 and 1.18, respectively. These lower ratios may indicate that the company's utilization of fixed assets to generate revenue was not as efficient during those years compared to the previous years.

The most recent data for 2023 shows a fixed asset turnover ratio of 0.11, which is significantly lower than the previous years. This dramatic decrease in the ratio may raise concerns about the company's ability to efficiently generate revenue from its fixed assets.

Overall, the fluctuation in Cytokinetics Inc's fixed asset turnover ratios over the past five years suggests varying levels of efficiency in utilizing its fixed assets to generate revenue, and it is important for stakeholders to monitor this ratio closely in the future to assess the company's operational performance.