Cytokinetics Inc (CYTK)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -505,425 | -497,831 | -472,599 | -468,850 | -468,576 | -469,855 | -480,972 | -375,712 | -337,799 | -238,769 | -186,603 | -231,203 | -191,389 | -203,569 | -124,008 | -100,374 | -89,692 | -77,807 | -105,898 | -100,594 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | — | — | -435.37% | — | — | — | — | — | — | — | -167.49% | -198.87% | -78.48% | -81.75% | -752.07% | -147.94% | -79.11% | -52.01% | — | — |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-505,425K ÷ ($—K + $-135,372K)
= —
Return on total capital is a key financial ratio that indicates how efficiently a company is utilizing its capital to generate profits. Looking at the data provided for Cytokinetics Inc, we observe a significant fluctuation in its return on total capital over the reported quarters.
The return on total capital for Cytokinetics Inc has been consistently negative throughout the period covered in the data. The negative percentages indicate that the company's total capital has not been effectively employed to generate returns for its stakeholders. Specifically, the return on total capital ranged from -52.01% to -752.07% during the period, with the lowest point being in June 30, 2021.
The persistent negative trend in the return on total capital raises concerns about the company's ability to generate profits relative to the capital invested. Investors and stakeholders may view this as a sign of inefficiency or poor financial performance by Cytokinetics Inc.
It is important for Cytokinetics Inc's management to address the reasons behind the consistently negative return on total capital and take appropriate measures to improve the company's profitability and capital utilization efficiency in order to attract investor confidence and ensure long-term sustainability.
Peer comparison
Dec 31, 2024