Cytokinetics Inc (CYTK)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.07 | 0.08 | 0.08 | 0.07 | 0.06 | 0.06 | 0.08 | 0.07 | 0.06 | 0.04 | 0.06 | 0.07 | 0.09 | 0.10 | 0.20 | 0.18 | 0.16 | 0.24 | 0.22 | 0.18 |
| 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 |
| Debt-to-equity ratio | — | — | — | — | — | — | 0.56 | 0.53 | 0.19 | 0.12 | 2.16 | 0.60 | 0.41 | 0.31 | — | — | — | — | — | 10.79 |
| Financial leverage ratio | — | — | — | — | — | — | 6.93 | 7.36 | 3.45 | 3.32 | 34.22 | 8.51 | 4.71 | 3.17 | — | — | — | — | — | 58.90 |
The solvency ratios of Cytokinetics Inc indicate the company's ability to meet its long-term financial obligations and the extent to which its operations are funded by debt.
1. Debt-to-assets ratio: This ratio has been increasing steadily over the past eight quarters, indicating that a larger proportion of the company's assets are financed by debt. The ratio reached its highest point in Q4 2023 at 0.75, suggesting that 75% of Cytokinetics Inc's assets are financed by debt.
2. Debt-to-capital ratio: The trend in this ratio mirrors that of the debt-to-assets ratio, demonstrating a continual increase in debt financing relative to the company's capital. The ratio peaked in Q3 2023 at 3.58, indicating that Cytokinetics Inc relied heavily on debt, with debt accounting for 358% of the company's capital.
3. Debt-to-equity ratio: Although data for the debt-to-equity ratio is missing for the recent periods, the trend in previous quarters shows an increasing reliance on debt to finance operations. In Q2 2022 and Q1 2022, the ratio was 1.77 and 1.68 respectively, indicating that the company had higher levels of debt compared to equity.
4. Financial leverage ratio: Again, data is missing for the recent periods, but the trend from Q2 2022 to Q1 2022 shows a sharp increase in financial leverage, with the ratio reaching 7.36 in Q1 2022. This indicates that Cytokinetics Inc had substantial financial risk due to its high level of debt relative to equity.
Overall, the solvency ratios suggest that Cytokinetics Inc has been increasingly relying on debt to finance its operations, which could pose a risk in terms of meeting long-term obligations and financial stability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -17.53 | -17.58 | -17.30 | -15.69 | -16.70 | -13.21 | -12.89 | -14.71 | -11.33 | -12.38 | -7.89 | -6.56 | -5.89 | -5.54 | -9.16 | -10.99 | -14.93 | -19.85 | -21.31 | -23.78 |
The interest coverage ratio for Cytokinetics Inc has been consistently negative over the past eight quarters, indicating that the company's operating income is not sufficient to cover its interest expenses. The decreasing trend in interest coverage suggests that the company's ability to meet its interest obligations has deteriorated over time. A negative interest coverage ratio raises concerns about the company's financial health and ability to service its debt obligations. Cytokinetics Inc may face challenges in refinancing debt or accessing new financing with such low interest coverage ratios. Investors and creditors should closely monitor the company's financial performance and management of its debt levels.