Cytokinetics Inc (CYTK)

Working capital 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
Total current assets	US$ in thousands	628,051	795,186	535,672	474,221	233,752
Total current liabilities	US$ in thousands	102,678	84,617	71,860	31,199	26,023
Working capital turnover		0.01	0.10	0.12	0.09	0.10

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $7,530K ÷ ($628,051K – $102,678K)
= 0.01

Cytokinetics Inc's working capital turnover has shown a decreasing trend over the past five years, declining from 0.13 in 2019 to 0.01 in 2023. This indicates that the company is generating less revenue relative to its working capital investment. A lower working capital turnover suggests inefficiencies in managing its current assets and liabilities to generate sales. Management should assess and improve the company's operational efficiency to enhance working capital turnover and optimize the utilization of resources.