Cytokinetics Inc (CYTK)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	113,024	65,582	112,666	82,985	36,433
Short-term investments	US$ in thousands	542,376	763,718	511,034	418,015	231,367
Total current liabilities	US$ in thousands	102,678	84,617	71,860	31,199	26,023
Cash ratio		6.38	9.80	8.68	16.06	10.29

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($113,024K + $542,376K) ÷ $102,678K
= 6.38

The cash ratio of Cytokinetics Inc has displayed fluctuations over the past five years. The ratio decreased from 15.06 in 2020 to 6.73 in 2021, indicating a decrease in the company's ability to cover its short-term liabilities with its cash holdings. However, in 2022, the ratio increased to 9.40, showing an improvement in the company's liquidity position. In 2023, the cash ratio decreased again to 6.10.

Overall, the company's cash ratio has been above 1 for all years, suggesting that Cytokinetics Inc has maintained a healthy level of cash reserves relative to its current liabilities. However, the fluctuations in the ratio highlight the importance of closely monitoring the company's cash position and liquidity management.