Cytokinetics Inc (CYTK)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	94,857	113,024	65,582	112,666	82,985
Short-term investments	US$ in thousands	981,157	501,800	716,995	358,972	381,075
Total current liabilities	US$ in thousands	179,674	102,678	84,617	71,860	31,199
Cash ratio		5.99	5.99	9.25	6.56	14.87

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($94,857K + $981,157K) ÷ $179,674K
= 5.99

The cash ratio of Cytokinetics Inc has exhibited fluctuations over the reported years. As of December 31, 2020, the cash ratio stood at 14.87, indicating a strong ability to cover short-term liabilities solely with cash and cash equivalents. However, by December 31, 2021, the cash ratio dropped to 6.56, signifying a decrease in liquidity compared to the previous year.

Subsequently, by December 31, 2022, the cash ratio increased to 9.25, which suggests an improvement in the company's liquidity position. Nevertheless, there was a decline in the cash ratio to 5.99 by both December 31, 2023, and December 31, 2024, indicating a potential strain on the company's ability to meet short-term obligations with available cash alone.

Overall, the trend in the cash ratio of Cytokinetics Inc highlights variability in its liquidity position over the reported years, signaling the need for the company to closely manage its cash resources to maintain financial stability and meet short-term financial obligations effectively.