Cytokinetics Inc (CYTK)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -503,014 | -468,576 | -337,799 | -185,982 | -88,614 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | -135,372 | -386,323 | -107,900 | 243,863 | 113,383 |
| Return on total capital | — | — | — | -76.26% | -78.15% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-503,014K ÷ ($—K + $-135,372K)
= —
Based on the data provided, Cytokinetics Inc's return on total capital has been in negative territory for the past few years. The return on total capital was -78.15% as of December 31, 2020, and improved slightly to -76.26% as of December 31, 2021. However, no data is available for the subsequent years from 2022 to 2024.
Negative return on total capital indicates that the company is not generating sufficient returns from the capital invested, which may raise concerns about its efficiency in utilizing capital resources to generate profits. It could be a sign of operational inefficiency, excessive leverage, or other issues impacting the company's financial performance.
It's essential for Cytokinetics Inc to closely analyze the factors contributing to the negative return on total capital and formulate strategies to improve capital allocation and operational effectiveness to enhance profitability and create value for its stakeholders.
Peer comparison
Dec 31, 2024