Cytokinetics Inc (CYTK)

Cash ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cash and cash equivalents	US$ in thousands	94,857	46,888	190,517	120,351	113,399	99,692	68,639	101,616	65,582	106,238	93,631	115,422	112,666	90,562	37,154	44,594	82,985	200,812	61,134	49,776
Short-term investments	US$ in thousands	981,157	964,804	866,633	498,985	501,800	439,547	497,083	562,346	716,995	761,426	492,395	493,552	358,972	387,074	313,147	380,983	381,075	209,452	151,929	170,930
Total current liabilities	US$ in thousands	179,674	109,812	102,777	88,855	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
Cash ratio		5.99	9.21	10.29	6.97	5.99	6.94	8.62	8.83	9.25	11.34	8.77	9.11	6.56	5.91	5.67	11.84	14.87	14.88	9.39	10.64

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 been fluctuating over the past several quarters. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations.

Looking at the trend in the cash ratio from March 31, 2020, to December 31, 2024, we can observe some fluctuations. The ratio started at a relatively high level of 10.64 in March 2020 and peaked at 14.88 in September 2020, indicating a strong liquidity position during that period.

However, the cash ratio started to decline from June 2021 onwards, reaching its lowest point of 5.67 in June 2021 and fluctuating between 5.67 and 9.25 until December 2022. This decline may suggest that the company's ability to cover short-term obligations with cash and cash equivalents weakened during this period.

From March 2023 onwards, there was a slight recovery in the cash ratio, but it remained below the levels seen in 2020 and early 2021. The ratio ranged from 5.99 to 10.29 between March 2023 and June 2024, indicating some improvement in liquidity but still below the levels observed in previous years.

Overall, the cash ratio for Cytokinetics Inc experienced fluctuations over the analyzed period. It is important for the company to carefully manage its cash and liquidity position to ensure it can meet its short-term obligations effectively.