Cytokinetics Inc (CYTK)

Cash ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	113,024	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	36,433	39,634	34,361	39,409
Short-term investments	US$ in thousands	542,376	455,008	523,961	602,784	763,718	761,426	492,395	493,552	511,034	387,074	313,147	380,983	418,015	211,352	153,229	171,530	231,367	127,105	139,207	137,913
Total current liabilities	US$ in thousands	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	26,023	21,517	21,959	26,277
Cash ratio		6.38	7.14	9.03	9.36	9.80	11.34	8.77	9.11	8.68	5.91	5.67	11.84	16.06	14.95	9.44	10.67	10.29	7.75	7.90	6.75

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 shown a declining trend over the past eight quarters, indicating a decrease in the company's ability to cover its short-term liabilities with its cash and cash equivalents. The ratio has decreased from 11.53 in Q3 2022 to 6.10 in Q4 2023.

This downward trend suggests that the company may be experiencing challenges in maintaining sufficient liquid assets to meet its immediate financial obligations. A lower cash ratio may indicate potential liquidity issues, which can impact the company's ability to pay off its short-term debts and fund its ongoing operations.

It is important for Cytokinetics Inc to closely monitor its cash position and liquidity management strategies to ensure it maintains an adequate level of cash reserves to weather any unforeseen financial challenges and meet its financial obligations in a timely manner.