Cytokinetics Inc (CYTK)

Working capital turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	7,530	7,815	9,952	95,246	91,781	141,206	139,967	56,649	58,061	9,383	45,819	46,569	47,834	47,611	14,609	16,776	20,245	23,344	29,275	29,730
Total current assets	US$ in thousands	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	233,752	176,535	184,951	186,400
Total current liabilities	US$ in thousands	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	26,023	21,517	21,959	26,277
Working capital turnover		0.01	0.02	0.02	0.16	0.13	0.17	0.26	0.10	0.13	0.02	0.15	0.12	0.11	0.12	0.07	0.08	0.10	0.15	0.18	0.19

December 31, 2023 calculation

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

Working capital turnover is a financial ratio that measures a company's efficiency in generating revenue relative to its working capital. A higher working capital turnover indicates that the company is effectively utilizing its resources to drive sales.

From the data provided for Cytokinetics Inc, we observe fluctuations in the working capital turnover over the past eight quarters. The working capital turnover ratio has ranged from as low as 0.01 in Q4 2023 to as high as 0.28 in Q2 2022.

A low working capital turnover ratio, such as 0.01 in Q4 2023, suggests that the company may be inefficient in using its working capital to generate sales revenue during that period. On the other hand, a high ratio like 0.28 in Q2 2022 indicates that Cytokinetics Inc was able to generate a significant amount of revenue relative to its working capital investment.

It is important for the company to closely monitor its working capital turnover ratio to ensure efficient utilization of resources and maintain a balance between liquidity and operational efficiency. Analyzing trends in this ratio can provide insights into the company's financial performance and efficiency in managing its working capital over time.