Cytokinetics Inc (CYTK)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	824,316	1,014,780	841,319	533,803	289,814
Total stockholders’ equity	US$ in thousands	-386,323	-107,900	243,863	113,383	-10,937
Financial leverage ratio		—	—	3.45	4.71	—

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $824,316K ÷ $-386,323K
= —

The financial leverage ratio for Cytokinetics Inc has exhibited a declining trend over the past five years. In 2019, the financial leverage ratio was not available, but in 2020, the ratio stood at 4.71, indicating a high level of financial leverage. However, there was a significant decrease in the ratio to 3.45 in 2021, signaling a reduction in the company's reliance on debt to finance its operations.

Unfortunately, data for 2022 and 2023 are not available, but based on the trend observed from 2020 to 2021, it is likely that the company continued to decrease its financial leverage in these years. A lower financial leverage ratio suggests a lower level of financial risk for the company as it indicates a lower proportion of debt in its capital structure compared to equity. This reduction may have been driven by various factors, such as improved profitability, debt repayment, or a shift towards equity financing.

Overall, the decreasing trend in the financial leverage ratio for Cytokinetics Inc implies a more conservative capital structure and potentially improved financial stability. However, a closer examination of the company's financial statements for the missing years would provide a more detailed understanding of the firm's leverage position and its implications for future financial performance.