Cytokinetics Inc (CYTK)

Return on total capital

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
Earnings before interest and tax (EBIT) (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 -100,460 -97,683 -97,592
Long-term debt US$ in thousands 58,384 60,885 62,492 64,110 63,810 63,544 62,344 61,165 47,367 30,203 35,538 40,874 46,209 45,920 45,631 45,340 45,052 44,762 44,473 36,382
Total stockholders’ equity US$ in thousands -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 -10,937 -19,869 -4,896 3,372
Return on total capital — — — — — -460.14% -103.38% -126.00% -63.97% -71.99% -243.39% -95.84% -58.86% -41.55% — — -289.81% -403.57% -246.82% -245.49%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-496,205K ÷ ($58,384K + $-386,323K)
= —

Cytokinetics Inc's return on total capital has been negative in all the quarters displayed. The return on total capital indicates that the company has not been able to generate sufficient profits to cover its total capital employed. The trend shows a deterioration in performance over the quarters, with the most recent quarter exhibiting the lowest return on total capital at -214.69%. This signals a significant challenge for the company in effectively utilizing its capital to generate returns for its investors and stakeholders. Further analysis and investigation into the factors contributing to this negative trend are warranted to address the company's financial performance and sustainability.