Cytokinetics Inc (CYTK)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick 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 |
| 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 |
Cytokinetics Inc's liquidity ratios demonstrate the company's ability to meet short-term obligations and cover immediate financial needs.
1. Current Ratio:
- The current ratio measures the company's ability to pay back its short-term liabilities with its short-term assets. Cytokinetics Inc's current ratio has been fluctuating over the years, ranging from a high of 15.20 in December 2020 to a low of 5.90 in June 2021.
- Although there have been fluctuations, the current ratio has generally been above 1, indicating that the company has more than enough current assets to cover its current liabilities, providing a margin of safety for creditors and investors.
2. Quick Ratio:
- The quick ratio, also known as the acid-test ratio, provides a more conservative measure of liquidity by excluding inventory from current assets. Cytokinetics Inc's quick ratio has followed a similar trend to the current ratio, with some variability over the years.
- Like the current ratio, the quick ratio has generally been above 1, suggesting that the company can meet its short-term obligations without relying on the sale of inventory.
3. Cash Ratio:
- The cash ratio is the most stringent measure of liquidity, focusing only on the company's ability to cover its current liabilities with its cash and cash equivalents. Cytokinetics Inc's cash ratio also exhibits a similar pattern to the current and quick ratios.
- The company has maintained a cash ratio above 1 in all periods, indicating that it has a strong ability to settle its short-term obligations using its readily available cash resources.
Overall, Cytokinetics Inc's liquidity ratios reflect a generally stable and strong liquidity position, with sufficient short-term assets to cover its short-term obligations. However, the fluctuations in the ratios over time suggest the need for continuous monitoring and management of liquidity risk to ensure the company's financial health and stability.
See also:
Additional liquidity measure
| 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 conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Cytokinetics Inc has consistently maintained a cash conversion cycle of 0.00 days throughout the periods from March 31, 2020, to December 31, 2024. This indicates that the company is efficiently managing its cash flow, with the time taken to convert its investments in inventory and other resources back into cash being negligible. A cash conversion cycle of 0.00 days suggests that Cytokinetics Inc is able to quickly turn its sales into cash without encountering delays in the process. This efficiency can potentially lead to improved liquidity and financial stability for the company.