Cytokinetics Inc (CYTK)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -496,205 | -324,202 | -186,313 | -93,943 | -98,867 |
| Total assets | US$ in thousands | 824,316 | 1,014,780 | 841,319 | 533,803 | 289,814 |
| Operating ROA | -60.20% | -31.95% | -22.15% | -17.60% | -34.11% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $-496,205K ÷ $824,316K
= -60.20%
Cytokinetics Inc's operating return on assets (operating ROA) has shown a fluctuating trend over the past five years, with negative values indicating operational inefficiencies. The operating ROA deteriorated significantly from -34.11% in 2019 to -60.20% in 2023, marking a substantial decline in the company's ability to generate profits from its assets. This downward trend suggests that Cytokinetics Inc may be facing challenges in effectively utilizing its assets to generate operating income. Management should closely examine the operational aspects of the business and consider strategies to improve efficiency and profitability in order to reverse this negative trend.
Peer comparison
Dec 31, 2023