Cytokinetics Inc (CYTK)
Liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Current ratio | 6.12 | 9.40 | 7.45 | 15.20 | 8.98 |
| Quick ratio | 6.40 | 9.80 | 9.40 | 16.20 | 10.49 |
| Cash ratio | 6.38 | 9.80 | 8.68 | 16.06 | 10.29 |
Cytokinetics Inc's liquidity ratios have shown consistency and strength over the past five years. The current ratio, which measures the company's ability to cover short-term liabilities with its current assets, has been consistently above 1, indicating a healthy liquidity position. The current ratio peaked at 15.20 in 2020, reflecting a substantial increase in short-term liquidity.
Similarly, the quick ratio, which is a more stringent measure of liquidity as it excludes inventory from current assets, has also demonstrated robust performance over the years. The quick ratio has matched the current ratio figures each year, suggesting that the company holds significant liquid assets that can rapidly cover its short-term obligations.
Furthermore, the cash ratio, which specifically assesses the company's ability to cover its current liabilities with cash and cash equivalents alone, has also been strong. The cash ratio has generally been above 1, indicating that Cytokinetics Inc holds sufficient cash reserves to meet its immediate payment obligations without relying on other current assets.
Overall, Cytokinetics Inc's liquidity ratios depict a financially stable company with ample resources to meet its short-term financial commitments. A consistently high current ratio, quick ratio, and cash ratio reflect a healthy balance sheet and the ability to withstand liquidity challenges.
See also:
Additional liquidity measure
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 16.97 | -51.78 | 273.06 | -15.16 | 17.89 |
The cash conversion cycle for Cytokinetics Inc has shown significant fluctuations over the past five years. In 2023, the company's cash conversion cycle increased substantially to 62.19 days, indicating that it took Cytokinetics approximately 62 days to convert its investments in inventory and receivables back into cash. This represents a significant increase from 2022 when the company had a very low cash conversion cycle of 0.57 days.
In 2021, Cytokinetics experienced a prolonged cash conversion cycle of 268.56 days, suggesting inefficiencies in managing its inventory, receivables, and payables. The company improved its cash conversion cycle in 2020 to 28.90 days, indicating better management of cash flow processes. However, the cycle increased again in 2019 to 70.14 days.
Overall, Cytokinetics' cash conversion cycle has been volatile, reflecting fluctuations in its working capital management and operational efficiency. The company may need to focus on optimizing its inventory turnover, accelerating receivables collection, and efficiently managing payables to shorten its cash conversion cycle and enhance its liquidity position.