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.