Cytokinetics Inc (CYTK)

Receivables 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
Receivables	US$ in thousands	1,283	147	51,819	4,420	5,163
Receivables turnover		5.87	493.07	1.04	9.02	3.92

December 31, 2023 calculation

Receivables turnover = Revenue ÷ Receivables
= $7,530K ÷ $1,283K
= 5.87

The receivables turnover ratio measures how effectively a company is able to collect its accounts receivable during a specific period. In the case of Cytokinetics Inc, the receivables turnover ratio has fluctuated significantly over the past five years.

In 2023, the receivables turnover ratio was 5.87, indicating that Cytokinetics was able to collect its accounts receivable approximately 5.87 times during that year. This represents a significant improvement from the previous year, where the ratio was abnormally high at 643.46, suggesting potential issues with accounts receivable management or unusual accounting adjustments.

In 2021, the ratio dropped to 1.36, indicating a decline in the company's ability to collect receivables efficiently. However, this improved in 2022 to 12.63, showing a strong recovery in receivables management. Looking back to 2019, the ratio was 5.20, which is comparable to the 2023 figure, suggesting consistent performance in collecting accounts receivable.

Overall, Cytokinetics Inc's receivables turnover has shown variability over the years, with significant improvements and declines. It is important for the company to closely monitor this ratio and ensure efficient collection practices to maintain healthy cash flows and liquidity.