Cytokinetics Inc (CYTK)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | -2,581.51% | -145.55% | -84.49% | -32.50% | -95.65% |
| Operating profit margin | -6,589.71% | -447.29% | -345.10% | -235.65% | -488.35% |
| Pretax margin | -6,988.63% | -536.69% | -398.82% | -319.30% | -601.10% |
| Net profit margin | -6,988.63% | -536.63% | -398.82% | -319.30% | -601.10% |
Cytokinetics Inc's profitability ratios suggest a concerning trend over the past five years. The gross profit margin has remained consistently at 100%, indicating strong control over the production costs. However, the operating profit margin, pretax margin, and net profit margin have all shown significant negative percentages, indicating substantial losses in each respective year.
The operating profit margin has deteriorated from -342.75% in 2019 to -6,589.71% in 2023, indicating a deepening operating loss over the years. Similarly, the pretax margin and net profit margin have also followed a deteriorating trend, reaching -6,988.63% in 2023. These negative margins highlight the company's inability to generate sufficient revenues to cover its operating and tax expenses, resulting in substantial net losses.
Overall, the profitability ratios of Cytokinetics Inc raise concerns about the company's financial performance and sustainability. Further analysis and investigation into the factors driving these losses are warranted to assess the company's future viability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -60.20% | -31.95% | -22.15% | -17.60% | -34.11% |
| Return on assets (ROA) | -63.84% | -38.33% | -25.59% | -23.85% | -41.99% |
| Return on total capital | — | — | -68.29% | -69.76% | -337.30% |
| Return on equity (ROE) | — | — | -88.29% | -112.27% | — |
Cytokinetics Inc's profitability ratios show a declining trend over the past five years. The operating return on assets (Operating ROA) has deteriorated significantly from -34.11% in 2019 to -60.20% in 2023, indicating that the company is generating lower operating profits relative to its assets. The return on assets (ROA) also exhibits a similar negative trend, dropping from -41.99% in 2019 to -63.84% in 2023, signaling a decline in overall profitability relative to total assets.
Moreover, the return on total capital has shown a severe deterioration, with a sharp decline from -83.56% in 2019 to -214.69% in 2023, suggesting that the company is struggling to generate returns on both equity and debt capital employed in its operations. The absence of Return on equity (ROE) data for 2023 and 2022 raises concerns about the company's ability to generate profits for its shareholders in those years.
Overall, the declining trend in Cytokinetics Inc's profitability ratios points towards challenges in generating profits relative to its asset base and capital structure, indicating a need for strategic interventions to improve the company's profitability and financial performance.