Cytokinetics Inc (CYTK)

Current 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
Total current assets	US$ in thousands	1,107,940	1,018,600	1,067,810	638,704	628,051	561,416	586,575	680,629	795,186	884,275	602,250	623,526	535,672	494,941	364,229	433,117	474,221	418,412	218,954	225,938
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
Current ratio		6.17	9.28	10.39	7.19	6.12	7.22	8.94	9.05	9.40	11.56	9.01	9.33	7.45	6.12	5.90	12.05	15.20	15.17	9.65	10.89

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,107,940K ÷ $179,674K
= 6.17

The current ratio of Cytokinetics Inc has fluctuated over the past few years, ranging from a high of 15.20 on December 31, 2020 to a low of 5.90 on June 30, 2021. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A higher current ratio is typically seen as favorable, indicating that the company has more than enough current assets to pay off its current liabilities.

It is important to note that a very high current ratio may suggest that the company is not efficiently utilizing its current assets, while a very low current ratio may indicate liquidity issues or an inability to meet short-term obligations.

Cytokinetics Inc's current ratio peaked at 15.20 on December 31, 2020, indicating a strong ability to cover its short-term liabilities with current assets at that time. However, the ratio then decreased significantly to 5.90 on June 30, 2021, which may have raised concerns about the company's liquidity position. Subsequently, the current ratio has shown some fluctuations but generally remained above 5, indicating a relatively healthy liquidity position.

Overall, the trend in Cytokinetics Inc's current ratio suggests that the company has had varying levels of liquidity over the past few years. Monitoring this ratio over time can provide insights into the company's financial health and ability to meet short-term obligations.