Cytokinetics Inc (CYTK)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | — | — | — | 0.00 | 0.00 |
| Debt-to-equity ratio | — | — | — | 0.00 | 0.00 |
| Financial leverage ratio | — | — | — | 3.45 | 4.71 |
Based on the provided data, Cytokinetics Inc has exhibited a very strong solvency position in recent years as indicated by its solvency ratios. The debt-to-assets ratio, which measures the proportion of a company's assets funded by debt, has consistently been at 0.00% from 2020 to 2024. This suggests that the company relies very minimally on debt to finance its assets, indicating a low level of financial risk.
Similarly, the debt-to-capital ratio and debt-to-equity ratio have also been reported as "—" across the years 2022 to 2024. This implies that there is either no debt in the company's capital structure or, in the case of the debt-to-equity ratio, that the level of debt is negligible compared to shareholders' equity. Again, this indicates a strong financial position and a conservative approach to leverage.
The financial leverage ratio, which measures the extent to which a company is using debt to finance its operations, was 4.71 in 2020, indicating relatively high leverage. However, this ratio improved significantly to 3.45 in 2021, suggesting that the company has been reducing its reliance on debt for financing since then. The absence of data for the subsequent years suggests that the trend of decreasing leverage might have continued, reinforcing the company's efforts to strengthen its solvency position.
Overall, based on the solvency ratios analyzed, Cytokinetics Inc appears to have a solid financial foundation with minimal debt levels and a cautious approach to leverage, reflecting a prudent and sustainable financial strategy.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | -5.81 | -8.13 | -6.60 | -6.34 | -2.29 |
The interest coverage ratio measures a company's ability to meet its interest payment obligations with its operating income. A higher ratio indicates a stronger ability to cover interest expenses.
Based on the data provided, Cytokinetics Inc's interest coverage ratios have been consistently negative over the past five years. This suggests that the company's operating income is insufficient to cover its interest expenses during these periods.
The trend shows a declining pattern in the interest coverage ratio over the years, indicating a worsening ability to meet interest obligations with operating income. The most recent ratio of -5.81 as of December 31, 2024, reflects a significant decline in the company's ability to cover its interest expenses.
Overall, the negative values imply a concerning financial situation where the company may be facing challenges in servicing its debt obligations using its generated income. It may signal potential liquidity issues and financial distress that investors and creditors should closely monitor.