Cytokinetics Inc (CYTK)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -497,938 | -369,586 | -198,874 | -111,327 | -115,069 |
| Long-term debt | US$ in thousands | 58,384 | 63,810 | 47,367 | 46,209 | 45,052 |
| Total stockholders’ equity | US$ in thousands | -386,323 | -107,900 | 243,863 | 113,383 | -10,937 |
| Return on total capital | — | — | -68.29% | -69.76% | -337.30% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-497,938K ÷ ($58,384K + $-386,323K)
= —
Cytokinetics Inc's return on total capital has shown a declining trend over the past five years, with a significant decrease from -83.56% in 2019 to -214.69% in 2023. This indicates that the company has been generating negative returns on the total capital employed in its operations. Negative return on total capital implies that the company's operating expenses and financing costs are exceeding its operating profits and capital investments, leading to an unsustainable financial performance. Investors and stakeholders should closely monitor Cytokinetics Inc's ability to improve its operational efficiency and profitability in order to reverse this negative trend and enhance its financial health.
Peer comparison
Dec 31, 2023