Cytokinetics Inc (CYTK)

Debt-to-capital ratio

		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
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
Debt-to-capital ratio		—	—	—	—	—	1.34	0.36	0.34	0.16	0.11	0.68	0.38	0.29	0.23	—	—	1.32	1.80	1.12	0.92

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $58,384K ÷ ($58,384K + $-386,323K)
= —

The debt-to-capital ratio of Cytokinetics Inc has shown fluctuations over the past eight quarters, ranging from as low as 0.63 to as high as 3.58. The ratio indicates the proportion of the company's total debt to its total capital (debt + equity).

In Q1 2022 and Q2 2022, the ratio was relatively low at 0.63 and 0.64, suggesting a conservative capital structure with a smaller proportion of total capital being financed by debt.

However, the ratio increased in subsequent quarters, reaching a peak of 3.58 in Q3 2023. This significant increase indicates a higher reliance on debt financing compared to equity, which may pose higher financial risk due to increased interest payments and potential liquidity challenges.

Overall, the trend in the debt-to-capital ratio for Cytokinetics Inc demonstrates fluctuations in the company's leverage levels over the specified period, reflecting changes in its capital structure and debt management strategies. It would be important to further analyze the reasons behind these fluctuations to assess the company's financial health and risk profile effectively.