Cytokinetics Inc (CYTK)

Working capital turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	18,474	7,530	94,588	70,428	55,828
Total current assets	US$ in thousands	1,107,940	628,051	795,186	535,672	474,221
Total current liabilities	US$ in thousands	179,674	102,678	84,617	71,860	31,199
Working capital turnover		0.02	0.01	0.13	0.15	0.13

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $18,474K ÷ ($1,107,940K – $179,674K)
= 0.02

Based on the data provided, Cytokinetics Inc's working capital turnover has fluctuated over the past five years. In December 31, 2020, the working capital turnover was 0.13, indicating that the company generated $0.13 of revenue for every dollar of working capital invested. This ratio increased slightly to 0.15 by December 31, 2021, suggesting improved efficiency in utilizing its working capital.

However, there was a notable decrease in efficiency in the following years. By December 31, 2022, the working capital turnover dropped back to 0.13, and then significantly declined to 0.01 by December 31, 2023, before slightly recovering to 0.02 by December 31, 2024.

The decreasing trend in the working capital turnover ratio from 2022 to 2023 indicates potential inefficiencies in managing working capital during that period. It is important for Cytokinetics Inc to assess and improve its working capital management practices to enhance operational efficiency and maximize financial performance in the future.