Cytokinetics Inc (CYTK)

Operating profit margin

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	-496,205	-495,817	-481,993	-370,818	-324,202	-218,876	-179,636	-223,559	-186,313	-201,016	-126,631	-104,192	-93,943	-81,242	-110,353	-104,711	-98,867	-96,619	-90,606	-87,303
Revenue (ttm)	US$ in thousands	7,530	7,815	9,952	95,246	91,781	141,206	139,967	56,649	58,061	9,383	45,819	46,569	47,834	47,611	14,609	16,776	20,245	23,344	29,275	29,730
Operating profit margin		-6,589.71%	-6,344.43%	-4,843.18%	-389.33%	-353.23%	-155.00%	-128.34%	-394.64%	-320.89%	-2,142.34%	-276.37%	-223.74%	-196.39%	-170.64%	-755.38%	-624.17%	-488.35%	-413.89%	-309.50%	-293.65%

December 31, 2023 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $-496,205K ÷ $7,530K
= -6,589.71%

The operating profit margin of Cytokinetics Inc has shown significant fluctuations over the past eight quarters. The company experienced negative operating profit margins in all quarters, with the most severe being in Q4 2023 and Q3 2023 at -6,589.71% and -6,344.43% respectively. This indicates that for every dollar of revenue generated, the company incurred substantial operating losses during these periods.

The negative operating profit margins suggest that the company's operating expenses exceeded its gross profit, resulting in overall unprofitable operations. Such consistent negative margins may raise concerns about the company's cost management efficiency, pricing strategy, or revenue generation capabilities. It is crucial for Cytokinetics Inc to closely monitor and address the factors contributing to these significant fluctuations in order to improve its financial performance and long-term sustainability.