Cytokinetics Inc (CYTK)

Fixed asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Revenue (ttm)	US$ in thousands	18,474	3,219	3,134	3,752	7,530	7,815	9,952	98,053	94,588	148,231	151,153	65,028	70,428	21,550	57,801	58,551	55,828	54,318	18,685	22,229
Property, plant and equipment	US$ in thousands	—	—	—	—	—	—	158,114	78,859	80,453	80,302	78,586	75,740	73,271	53,896	119,948	23,198	13,346	7,667	5,611	5,162
Fixed asset turnover		—	—	—	—	—	—	0.06	1.24	1.18	1.85	1.92	0.86	0.96	0.40	0.48	2.52	4.18	7.08	3.33	4.31

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $18,474K ÷ $—K
= —

The fixed asset turnover ratio measures the efficiency with which a company is utilizing its fixed assets to generate revenue. A higher ratio indicates that the company is generating more revenue per dollar of investment in fixed assets, reflecting better asset utilization.

Analyzing the fixed asset turnover for Cytokinetics Inc over the historical period provided, we observe fluctuations in the ratio:

1. The ratio was relatively high and stable around 4 to 7 in the first three quarters of 2020, indicating efficient utilization of fixed assets to generate revenue.
2. However, a significant drop in the ratio to around 0.5 was observed from March 31, 2021, to September 30, 2021, suggesting a decline in revenue generated per dollar of fixed assets invested.
3. The ratio continued to remain low through the end of 2022, indicating ongoing challenges with asset efficiency.
4. A slight improvement was seen in the ratio in the first half of 2023, but it dropped significantly to 0.06 by June 30, 2023, reflecting a concerning decline in asset utilization.
5. Notably, data for the latter half of 2023 and the subsequent years is not available (marked as "N/A" or "\u2014"), making it difficult to assess the recent trend in fixed asset turnover for Cytokinetics Inc.

In conclusion, the fixed asset turnover ratio for Cytokinetics Inc has shown both periods of efficiency and decline in asset utilization over the historical period, highlighting the importance of closely monitoring and managing fixed asset efficiency for sustainable revenue generation.