Cytokinetics Inc (CYTK)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 100.00% | -4,284.10% | -154.59% | -127.09% | -73.66% |
| Operating profit margin | -2,902.72% | -6,589.71% | -342.75% | -264.54% | -168.27% |
| Pretax margin | -3,191.11% | -6,988.63% | -411.21% | -305.72% | -228.00% |
| Net profit margin | -3,191.11% | -6,988.63% | -425.58% | -344.14% | -294.00% |
Based on the provided data for Cytokinetics Inc's profitability ratios, it is evident that the company has been experiencing significant challenges in generating profits over the years.
1. Gross Profit Margin: Cytokinetics Inc has seen a fluctuating trend in its gross profit margin from negative percentages to an exceptionally high value of 100%. The negative percentages suggest that the company's cost of goods sold has exceeded its revenues, leading to gross losses in some periods. However, the sudden shift to a 100% gross profit margin in December 31, 2024, may indicate a potential improvement in cost management or a one-time event affecting the financials.
2. Operating Profit Margin: The operating profit margin also shows negative values, indicating that the company's operating expenses were greater than its revenues. The margin worsened significantly in December 31, 2023, and December 31, 2024, with the company incurring substantial losses relative to its operating income.
3. Pre-tax Margin and Net Profit Margin: Both the pre-tax margin and net profit margin ratios exhibit consistent negativity, with the company reporting losses in multiple consecutive years. The margins show a deteriorating trend, reaching their lowest levels in December 31, 2023, and December 31, 2024, reflecting the challenges faced by Cytokinetics Inc in generating profits after accounting for all expenses and taxes.
Overall, the data illustrates the financial struggles of Cytokinetics Inc in maintaining profitability, with negative margins across different levels indicating ongoing financial challenges that may require strategic interventions to improve the company's bottom line performance.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -38.26% | -60.20% | -31.95% | -22.15% | -17.60% |
| Return on assets (ROA) | -42.06% | -63.84% | -39.67% | -28.81% | -30.75% |
| Return on total capital | — | — | — | -76.26% | -78.15% |
| Return on equity (ROE) | — | — | — | -99.39% | -144.76% |
Cytokinetics Inc's profitability ratios for the period from December 31, 2020, to December 31, 2024, reflect significant challenges in generating positive returns.
1. Operating Return on Assets (Operating ROA):
- The Operating ROA shows a declining trend, deteriorating from -17.60% in 2020 to -38.26% in 2024. This indicates that the company's operating income generated from its assets has been decreasing over the years.
2. Return on Assets (ROA):
- The ROA also exhibits a downward trajectory, decreasing from -30.75% in 2020 to -42.06% in 2024. This suggests that the company's ability to generate profits from its total assets is diminishing.
3. Return on Total Capital:
- The data is missing for the Return on Total Capital for the years 2022, 2023, and 2024, indicating a lack of information to assess the return on the company's total invested capital.
4. Return on Equity (ROE):
- The ROE portrays a distressing performance, plunging from -144.76% in 2020 to -99.39% in 2021. This indicates that shareholder returns have been severely negative, signifying an alarming situation for the company's equity investors.
Overall, the profitability ratios demonstrate a concerning trend for Cytokinetics Inc, reflecting challenges in generating profits from its assets, operations, capital, and equity. The company may need to undertake strategic actions to improve its profitability and financial performance in the coming periods.