Cytokinetics Inc (CYTK)
Net profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -589,526 | -526,244 | -402,552 | -242,370 | -164,135 |
| Revenue | US$ in thousands | 18,474 | 7,530 | 94,588 | 70,428 | 55,828 |
| Net profit margin | -3,191.11% | -6,988.63% | -425.58% | -344.14% | -294.00% |
December 31, 2024 calculation
Net profit margin = Net income ÷ Revenue
= $-589,526K ÷ $18,474K
= -3,191.11%
Net profit margin is a key financial metric that indicates the percentage of revenue that translates into net income after all expenses have been deducted. For Cytokinetics Inc, the net profit margin has shown a concerning trend over the years. In December 2020, the net profit margin was -294.00%, implying that the company incurred losses equivalent to 294% of its revenue. This trend worsened in subsequent years, with the net profit margin decreasing to -344.14% in December 2021, -425.58% in December 2022, -6,988.63% in December 2023, and -3,191.11% in December 2024.
A negative net profit margin indicates that a company is operating at a loss, which is a red flag for investors and creditors. In the case of Cytokinetics Inc, the consistently negative net profit margins suggest that the company's expenses are exceeding its revenue by a significant margin. This could be due to various factors such as high operating costs, declining sales, or inefficient cost management.
It is crucial for Cytokinetics Inc to address the underlying reasons for its declining net profit margins to achieve sustainable profitability and financial stability. Investors and stakeholders should closely monitor the company's financial performance and management's strategies to improve profitability and turn the business around.
Peer comparison
Dec 31, 2024