Cytokinetics Inc (CYTK)

Working capital 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
Total current assets	US$ in thousands	1,107,940	1,018,600	1,067,810	638,704	628,051	561,416	586,575	680,629	795,186	884,275	602,250	623,526	535,672	494,941	364,229	433,117	474,221	418,412	218,954	225,938
Total current liabilities	US$ in thousands	179,674	109,812	102,777	88,855	102,678	77,723	65,617	75,220	84,617	76,496	66,843	66,847	71,860	80,868	61,766	35,930	31,199	27,573	22,696	20,741
Working capital turnover		0.02	0.00	0.00	0.01	0.01	0.02	0.02	0.16	0.13	0.18	0.28	0.12	0.15	0.05	0.19	0.15	0.13	0.14	0.10	0.11

December 31, 2024 calculation

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

Working capital turnover is a financial ratio that measures how efficiently a company generates revenue from its working capital. A higher working capital turnover indicates that the company is effectively managing its working capital to support sales and operations.

Analyzing the working capital turnover data for Cytokinetics Inc from March 31, 2020, to December 31, 2024, we observe fluctuations in the ratio over time. The working capital turnover ranged from a low of 0.00 to a high of 0.28 during this period.

In the early years, the working capital turnover ratio ranged between 0.10 and 0.15, indicating relatively stable performance in terms of working capital efficiency. However, there was a notable increase to 0.28 on June 30, 2022, suggesting a significant improvement in utilizing working capital to generate revenue efficiently.

Subsequently, the working capital turnover ratio declined sharply to 0.02 on June 30, 2023, and remained at this level for the following quarters. The decreasing trend in the ratio from 2023 onwards may indicate potential challenges in managing working capital effectively to support the company's operations and sales.

Overall, while there were periods of both improvement and decline in working capital turnover for Cytokinetics Inc, it is important for the company to focus on optimizing its working capital management practices to sustain efficiency in generating revenue from its current assets.