Cytokinetics Inc (CYTK)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 6.17 | 6.12 | 9.40 | 7.45 | 15.20 |
| Quick ratio | 5.99 | 5.99 | 9.25 | 6.56 | 14.87 |
| Cash ratio | 5.99 | 5.99 | 9.25 | 6.56 | 14.87 |
Cytokinetics Inc's liquidity ratios show a strong financial position in terms of short-term liquidity. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, decreased from 15.20 in 2020 to 6.17 in 2024. While there was a decline, the current ratio remained well above the industry average of around 2, indicating that the company has ample current assets to meet its short-term obligations.
The quick ratio, also known as the acid-test ratio, considers only the most liquid assets like cash and marketable securities to cover current liabilities. Cytokinetics Inc's quick ratio decreased from 14.87 in 2020 to 5.99 in 2024. Despite the decline, the quick ratio still remains strong, suggesting the company's ability to meet its short-term obligations without relying on inventory.
Moreover, the cash ratio, which is the most stringent measure of liquidity as it only includes cash and cash equivalents to cover current liabilities, mirrored the trend in the quick ratio, remaining stable at 5.99 from 2022 to 2024. This indicates that Cytokinetics Inc has a significant amount of cash reserves compared to its current liabilities, providing a cushion in case of unexpected financial needs.
Overall, Cytokinetics Inc's liquidity ratios demonstrate strong short-term financial health, with adequate current assets and liquid resources to meet its short-term obligations and maintain operations efficiently.
See also:
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Based on the provided data, Cytokinetics Inc has consistently maintained a cash conversion cycle of 0.00 days from December 31, 2020, to December 31, 2024. A cash conversion cycle of 0.00 days indicates that the company is effectively managing its cash flows related to the operating cycle. This could suggest that Cytokinetics is efficiently converting its inventory into receivables and then into cash, thereby minimizing the time it takes to generate cash from its operations. This is a positive sign of efficiency and liquidity within the company's operations.