Cytokinetics Inc (CYTK)

Debt-to-capital ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	-135,372	-386,323	-107,900	243,863	113,383
Debt-to-capital ratio		—	—	—	0.00	0.00

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $-135,372K)
= —

The debt-to-capital ratio is a key financial metric used to assess a company's leverage and financial risk. In the case of Cytokinetics Inc, the data shows that the debt-to-capital ratio was 0.00% as of December 31, 2020 and has remained the same with a ratio of 0.00% for the subsequent years up to 2024 for which data is provided.

A debt-to-capital ratio of 0.00% typically indicates that the company has no debt in its capital structure, or that the amount of debt is negligible compared to the total capital employed. This suggests that Cytokinetics Inc has been financing its operations and growth primarily through equity or retained earnings rather than relying on debt financing.

While a low or zero debt-to-capital ratio can indicate financial strength and lower risk of default, it can also suggest that the company may not be taking advantage of potential tax benefits associated with debt financing. Additionally, the absence of debt in the capital structure may limit flexibility in managing the company's capital and growth opportunities.

Overall, the consistent 0.00% debt-to-capital ratio for Cytokinetics Inc indicates a conservative approach to capital structure and may reflect a deliberate strategy to maintain a strong financial position with minimal debt obligations.