Cytokinetics Inc (CYTK)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | -589,526 | -576,402 | -545,279 | -530,598 | -524,396 | -518,961 | -565,718 | -465,847 | -437,439 | -336,548 | -236,455 | -269,243 | -215,314 | -228,674 | -155,763 | -134,989 | -127,290 | -114,000 | -140,398 | -131,731 |
| Total stockholders’ equity | US$ in thousands | -135,372 | -13,911 | 108,550 | -396,160 | -386,323 | -438,801 | -333,115 | -229,020 | -107,900 | -15,977 | 111,414 | 116,261 | 243,863 | 249,020 | 16,489 | 67,846 | 113,383 | 149,605 | -78,080 | -45,711 |
| ROE | — | — | -502.33% | — | — | — | — | — | — | — | -212.23% | -231.58% | -88.29% | -91.83% | -944.65% | -198.96% | -112.27% | -76.20% | — | — |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-589,526K ÷ $-135,372K
= —
Return on equity (ROE) is a critical financial metric that measures a company's efficiency in generating profits from its shareholders' equity. Looking at the data provided for Cytokinetics Inc, we observe a concerning trend in its ROE figures over the years.
At the end of December 31, 2022, the ROE stood at -88.29%, indicating that the company was incurring significant losses relative to its equity base. This negative ROE suggests that the company's net income was insufficient to cover its shareholders' equity, raising questions about its profitability and operational performance.
Subsequently, the ROE deteriorated further to -502.33% by June 30, 2024. This steep decline indicates a significant decline in the company's ability to generate profits compared to its equity base. A negative ROE of this magnitude can be a red flag for investors and stakeholders, signaling potential financial distress and inefficiencies within the company.
Overall, the persistent negative ROE of Cytokinetics Inc highlights challenges in profitability and efficiency, pointing towards underlying issues that may require management's attention to improve the company's financial performance and sustain long-term value creation for its shareholders.
Peer comparison
Dec 31, 2024