Cytokinetics Inc. (NASDAQ:CYTK)

Total Asset Turnover

The reported total asset turnover exhibited a slight decline from 0.15 in 2018 to 0.08 in 2021, followed by a minor recovery to 0.09 in 2022. The adjusted total asset turnover shows a notable spike to 0.27 in 2020, suggesting an unusual increase in asset efficiency during that year, but then it fell sharply to 0.01 by 2022, indicating a significant reduction in asset utilization thereafter.

Debt to Equity Ratios

The reported debt to equity ratio decreased from 1.64 in 2018 to 0.59 in 2021, reflecting a reduction in leverage over the period where data is available. Adjusted ratios corroborate this trend, with a decline from 2.03 in 2018 to 0.82 in 2021, indicating improvement in the equity base relative to debt or reduction in debt levels.

Debt to Capital Ratios

Reported debt to capital ratios reveal volatility, initially rising sharply from 0.62 in 2018 to 1.09 in 2019, declining to 0.37 in 2021, and then surging again to 1.21 in 2022. Adjusted debt to capital ratios follow a similar pattern with less variation in the 2020-2021 period but show a marked increase in 2022. This suggests fluctuating reliance on debt financing relative to total capital over the timeframe.

Financial Leverage

Reported financial leverage decreased notably from 8.14 in 2018 to 3.45 in 2021, indicating lower use of debt relative to equity assets. The adjusted financial leverage confirms this downtrend, moving from 8.54 to 2.54 over the same period, consistent with a deleveraging strategy or improved equity position.

Net Profit Margin

The net profit margin remained deeply negative throughout all periods, with reported margins worsening from -337.41% in 2018 to a dramatic -411.21% in 2022. Adjusted figures indicate extreme volatility, particularly a steep decline to -6308.33% in 2022 after some improvement in 2020. This points to persistent and escalating losses, with financial performance deteriorating especially in recent years.

Return on Equity (ROE)

The reported ROE was negative in all periods with available data, showing a movement from -409.84% in 2018 to -88.29% in 2021, suggesting some recovery but still substantial losses relative to equity. Adjusted ROE displayed less volatility but also remained negative, improving from -409.24% in 2018 to -20.37% in 2020 but worsening again to -65.38% in 2021, indicating inconsistent returns to shareholders.

Return on Assets (ROA)

The reported ROA demonstrated ongoing negative returns, improving from -50.33% in 2018 to -23.85% in 2020, but then worsening to -38.33% by 2022. The adjusted ROA followed a similar trend, with a low point in 2020 at -7.65% before deteriorating again by 2022. This suggests continued inefficient use of assets to generate profits.

Revenues

Revenues displayed a fluctuating trend over the five-year period. After a decline from 31,501 thousand USD in 2018 to 26,868 thousand USD in 2019, there was a significant increase in 2020 to 55,828 thousand USD. This upward trajectory continued through 2021 and 2022, reaching 70,428 thousand USD and 94,588 thousand USD respectively, indicating a substantial overall growth in revenue by the end of the period.

Total assets

Total assets consistently increased each year, starting at 211,178 thousand USD in 2018 and rising steadily to 1,014,775 thousand USD by 2022. This represents nearly a fivefold increase over the period, reflecting a substantial expansion in the company’s asset base.

Reported total asset turnover

This metric, which measures the efficiency of asset utilization to generate revenues, showed a general downward trend. It started at 0.15 in 2018, declined to 0.09 in 2019, and remained relatively stable around 0.08 to 0.10 in subsequent years, ending marginally higher at 0.09 in 2022. This suggests a decreasing efficiency in generating revenues from assets despite asset growth and revenue increases.

Adjusted revenues

Adjusted revenues exhibited considerable volatility. Following a decline from 31,501 thousand USD in 2018 to 26,868 thousand USD in 2019, there was a sharp peak to 142,828 thousand USD in 2020, driven perhaps by extraordinary or non-recurring factors. This was followed by a steep drop to 70,428 thousand USD in 2021 and a dramatic decrease to 7,588 thousand USD in 2022, indicating significant adjustment-related fluctuations and potential irregularities or one-time effects impacting revenue recognition.

Adjusted total assets

The pattern of adjusted total assets is similar to the total assets reported, increasing consistently from 221,533 thousand USD in 2018 to 1,014,775 thousand USD in 2022. This comparable growth suggests that adjustments to total assets have not materially altered the trend observed in reported total assets.

Adjusted total asset turnover

Adjusted total asset turnover showed significant variability. After starting at 0.14 in 2018 and dropping to 0.09 in 2019, there was a sharp increase to 0.27 in 2020 coinciding with the peak in adjusted revenues. Subsequently, this ratio declined markedly to 0.08 in 2021 and further fell to 0.01 in 2022. This volatility highlights an inconsistent ability to generate adjusted revenues from adjusted assets, with a notable erosion in efficiency by the end of the period.

The financial data exhibits significant volatility in both the debt structure and equity position over the five-year period.

Total Debt

Total debt shows a marked upward trend overall, increasing steadily from approximately 42.4 million USD at the end of 2018 to a substantial 611.6 million USD by the end of 2022. There is a particularly sharp increase between 2021 and 2022, where total debt more than quadruples, indicating a significant increase in leverage or borrowing during this last reported year.

Stockholders’ Equity (Deficit)

Stockholders' equity fluctuates considerably over the period. It starts positive at about 25.9 million USD in 2018, turns negative in 2019 at around -10.9 million USD, recovers to a peak of approximately 243.9 million USD in 2021, and then again falls sharply to a negative 107.9 million USD by 2022. This volatility suggests variability in retained earnings or other equity components, along with possible impacts of losses or restructuring events.

Reported Debt to Equity Ratio

Limited data is available for this ratio, with notable readings of 1.64 in 2018, 1.2 in 2020, and a reduction to 0.59 in 2021. The declining ratio through 2021 implies a temporary improvement in the balance between debt and equity before the data gap for 2022. However, due to missing values, the full trend cannot be definitively concluded.

Adjusted Total Debt

Adjusted total debt follows a similar upward trajectory as total debt but with higher absolute values, increasing from about 52.8 million USD in 2018 to 751.3 million USD in 2022. This escalation aligns with the general increase in leverage observed, with a notable emphasis on the adjustments applied, which magnify the reported debt figures.

Adjusted Stockholders’ Equity (Deficit)

The adjusted equity figures parallel the fluctuations seen in reported equity but differ in magnitude. Adjusted equity starts positive at 25.9 million USD in 2018, dips negative in 2019, climbs significantly to a high of 330.9 million USD by 2021, and then reverts sharply to a negative 107.9 million USD by 2022. This indicates the adjustments highlight both underlying improvements and deteriorations in equity across the period.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio decreases from 2.03 in 2018 to 0.69 in 2020, signalling a reduction in debt relative to equity during that period. In 2021, the ratio slightly rises to 0.82, suggesting a moderate increase in leverage relative to equity. Data for 2019 and 2022 is missing, limiting a full trend assessment, but the available points demonstrate variability in financial leverage.

Overall, the company experienced significant fluctuations in financial leverage and equity position, with a considerable increase in debt levels and equity volatility, especially evident in the last reported year. The sharp increases in total and adjusted debt by 2022, combined with substantial declines into negative equity, indicate heightened financial risk and potential challenges in capital structure stability.

Total Debt

The total debt increased consistently from 2018 to 2022. Starting at 42,413 thousand USD in 2018, it rose sharply to 129,257 thousand USD in 2019, then showed smaller incremental increases in 2020 and 2021. A significant surge occurred in 2022, reaching 611,619 thousand USD, indicating a substantial rise in debt levels in the most recent year.

Total Capital

Total capital also exhibited growth over the five-year period. It increased from 68,347 thousand USD in 2018 to over 500,000 thousand USD in 2022. The increase was steady, with accelerating growth observed from 2020 onwards, suggesting expansion or increased investment activity.

Reported Debt to Capital Ratio

The reported debt to capital ratio shows notable volatility. It started at a moderate level of 0.62 in 2018, peaked above 1.0 in 2019, indicating debt exceeding capital, then declined to its lowest point of 0.37 in 2021. In 2022, the ratio sharply increased again to 1.21, suggesting a comparatively higher debt burden relative to capital at the end of the period.

Adjusted Total Debt

Adjusted total debt followed a pattern similar to reported total debt but with generally higher values each year. Starting at 52,768 thousand USD in 2018, it increased moderately until 2020, followed by a significant jump to 271,235 thousand USD in 2021, and another marked rise to 751,343 thousand USD in 2022. The adjusted figures highlight a more pronounced increase in debt levels compared to reported figures.

Adjusted Total Capital

The adjusted total capital grew consistently, starting from 78,702 thousand USD in 2018 and reaching 643,443 thousand USD in 2022. The largest increments occurred after 2019, reflecting substantial capital growth possibly tied to equity infusions or retained earnings.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio exhibited variability akin to the reported ratio but with slightly different magnitudes. It was highest in 2019 at 1.09, dropped to a low of 0.41 in 2020, modestly increased in 2021 to 0.45, and then surged to 1.17 in 2022. This trend underscores a fluctuating capital structure, with the most recent period characterized by elevated leverage.

Total Assets

Total assets exhibited a consistent and substantial increase over the observed five-year period. Starting at approximately $211 million in 2018, assets grew to about $1.01 billion by the end of 2022, reflecting significant asset accumulation and expansion in scale.

Stockholders’ Equity (Deficit)

Stockholders’ equity showed high volatility throughout the period. It declined from a positive $25.9 million in 2018 to a deficit of $10.9 million in 2019, rebounded sharply to $113.4 million in 2020 and further increased to $243.9 million in 2021 before falling back into a considerable deficit of $107.9 million in 2022. This pattern indicates considerable fluctuations in retained earnings or adjustments affecting equity.

Reported Financial Leverage

Reported financial leverage demonstrated a downward trend where data is available. Starting at 8.14 in 2018, it decreased to 4.71 in 2020 and further to 3.45 in 2021, suggesting a reduction in the proportion of debt relative to equity in these years. Data for 2019 and 2022 is missing, limiting full trend assessment.

Adjusted Total Assets

Adjusted total assets followed an identical upward trajectory as reported total assets over the period, increasing from $221.5 million in 2018 to $1.01 billion in 2022, indicating consistency between reported and adjusted asset values.

Adjusted Stockholders’ Equity (Deficit)

Adjusted equity values reveal a similar pattern of volatility but diverge notably in magnitude compared to reported equity. After starting at about $25.9 million in 2018 and dropping to a deficit in 2019, adjusted equity rose significantly higher than reported equity in 2020 ($200.4 million versus $113.4 million) and 2021 ($330.9 million versus $243.9 million). However, like the reported figures, it fell back to a deficit of $107.9 million in 2022. This implies adjustments positively impacted equity calculations in 2020 and 2021 but not in 2019 or 2022.

Adjusted Financial Leverage

Adjusted financial leverage mirrored the declining trend seen in reported leverage where data is available, starting at 8.54 in 2018 and decreasing to 2.66 and 2.54 in 2020 and 2021, respectively. The adjustments have resulted in generally lower leverage ratios post-2018, indicating a relatively stronger equity base after adjustments. Data for 2019 and 2022 remain unavailable, making full trend analysis incomplete.

The financial data reveals significant trends in the company's performance over the five-year period ending in 2022. The net loss has increased consistently, nearly quadrupling from approximately 106 million US dollars in 2018 to nearly 389 million US dollars in 2022. This trend indicates growing financial challenges and escalating expenses or declining profitability.

Revenues exhibit a non-linear pattern. Initially, revenues decreased from about 31.5 million US dollars in 2018 to 26.9 million in 2019. This was followed by a substantial increase in 2020 to approximately 55.8 million and continued growth through 2021 and 2022, reaching around 94.6 million US dollars. Despite this growth in revenues, the company's profitability did not improve correspondingly, as reflected by the rising net loss.

The reported net profit margin remained negative throughout the period, indicating that the company did not generate profits in any year. The margins worsened over time, with a sharp decline in 2019 and 2022, reaching a negative margin exceeding 400% in 2022. This suggests that losses greatly exceeded revenues, demonstrating inefficient cost management or other structural financial issues.

Adjusted financial metrics provide additional insight. The adjusted net loss also reflects a general upward trend in losses, with a notable reduction in 2020 to about 40.8 million US dollars, which contrasts with the reported net loss pattern. However, losses grew significantly again in subsequent years, culminating in a record adjusted net loss of nearly 479 million US dollars in 2022.

Adjusted revenues show a different pattern, with a significant spike to approximately 142.8 million US dollars in 2020, followed by a sharp decline in the following years. This divergence from the reported revenues suggests the presence of extraordinary items or adjustments affecting the 2020 financials. The steep decline in adjusted revenues by 2022 to just 7.6 million US dollars reflects a potential issue in the core operational revenue base when adjustments are taken into account.

The adjusted net profit margin mirrors the reported margins in being negative throughout but shows extreme volatility, worsening considerably in 2022 to an unprecedented negative margin exceeding 6300%. This highlights a severe deterioration in financial health once adjustments are applied.

Overall, the data indicates escalating losses despite growing or fluctuating revenues, with both reported and adjusted figures underscoring deepening financial difficulties. The sharp changes in adjusted revenues and margins in 2020 and 2022 warrant further investigation into the underlying causes, such as one-time events or accounting adjustments affecting these periods.

Net Loss Trend

Consistent and substantial increase, reaching nearly 389 million US dollars loss in 2022.

Revenue Pattern

Initial decline in 2019, strong recovery and growth in subsequent years to nearly 95 million US dollars in 2022.

Profitability

Negative margins throughout, worsening significantly in 2022.

Adjusted Net Loss

Decrease in 2020 followed by sharp increases, peaking at nearly 479 million US dollars loss in 2022.

Adjusted Revenues

Spike in 2020 followed by steep decline, indicating atypical items affecting reported figures.

Adjusted Net Profit Margin

Extreme volatility with significant deterioration in 2022.

Net Loss

The net loss exhibited a consistently increasing trend over the five-year period. Starting at approximately $106 million in 2018, it progressively deepened each year, reaching nearly $389 million by the end of 2022. The sharpest increments occurred in 2021 and 2022, indicating accelerating financial challenges.

Stockholders’ Equity (Deficit)

The stockholders' equity displayed significant volatility between 2018 and 2022. Initially positive at approximately $26 million in 2018, it turned negative in 2019, showing a deficit of about $11 million. Recovery was observed in 2020 and 2021, with equity rising to $113 million and $244 million respectively. However, by 2022, equity fell sharply to a deficit of approximately $108 million, reflecting deteriorating financial stability.

Reported Return on Equity (ROE)

The reported ROE was negative throughout the periods reported, with extreme negative values indicating losses relative to shareholders’ equity. It began at -409.84% in 2018, was not reported in 2019, then improved moderately to -112.27% in 2020 and further to -88.29% in 2021. Data for 2022 was not available, but the pattern suggests persistent negative returns.

Adjusted Net Loss

Adjusted net loss followed a similar pattern to net loss but with notable differences. Losses were stable around $106 million and $121 million in 2018 and 2019, respectively. However, in 2020, the loss significantly decreased to approximately $41 million before sharply escalating to $216 million in 2021 and then to $479 million in 2022. This suggests significant adjustments affecting reported losses in 2020 and heightened financial pressures subsequently.

Adjusted Stockholders’ Equity (Deficit)

The adjusted stockholders’ equity closely mirrored the reported equity trend but showed higher values in the recovery years. From $26 million in 2018, equity turned negative in 2019 at -$11 million, then improved to $200 million in 2020 and $331 million in 2021, outperforming the reported figures. Despite this, it again declined drastically to a deficit of $108 million in 2022, highlighting financial strain.

Adjusted ROE

Adjusted ROE was strongly negative where values were reported, starting with -409.24% in 2018, no data for 2019, then improving significantly to -20.37% in 2020. However, it worsened to -65.38% in 2021, indicating persistent low efficiency in generating returns on adjusted equity. Data for 2022 is unavailable, but prior trends suggest ongoing challenges.

The financial data indicates several significant trends over the five-year period.

Net Loss

The net loss exhibits a consistently increasing trend, rising from approximately $106 million in 2018 to nearly $389 million in 2022. The most dramatic increase occurs between 2021 and 2022, where the net loss almost doubles, indicating an accelerated deterioration in profitability or rising expenses.

Total Assets

Total assets have grown substantially, increasing from around $211 million in 2018 to over $1 billion by the end of 2022. This growth is steady and quite pronounced, particularly between 2019 and 2021, suggesting significant investment or asset acquisition during this period.

Reported Return on Assets (ROA)

The reported ROA remains negative throughout, reflecting ongoing losses relative to asset base. Initially, the ROA improves from -50.33% in 2018 to -23.85% in 2020, indicating some enhancement in asset efficiency. However, this improvement reverses in the subsequent years, with ROA declining again to -38.33% by 2022, paralleling the increase in net loss.

Adjusted Net Loss

The adjusted net loss follows a similar pattern to the reported net loss but shows a notable anomaly in 2020, where the loss is significantly lower at approximately $40.8 million. Despite this temporary improvement, the adjusted net loss worsens sharply in 2021 and 2022, with 2022 showing the highest loss in the series at nearly $479 million.

Adjusted Total Assets

The adjusted total assets mirror the trends observed in reported total assets, confirming the consistent growth from $221.5 million in 2018 to $1.01 billion in 2022. This alignment suggests adjustments did not substantially alter asset valuation trends.

Adjusted ROA

The adjusted ROA reflects similar dynamics to the reported ROA, with a marked improvement peaking in 2020 at -7.65%, possibly indicating one-time effects or adjustments that positively influenced reported performance. However, this is followed by a sharp decline in subsequent years to -47.17% in 2022, indicating deteriorated return on the increasingly large asset base.

Overall, the data illustrates a company experiencing rapid growth in asset size while struggling with substantial and increasing net losses, particularly pronounced in 2021 and 2022. The momentary improvement in 2020's adjusted profitability does not persist, and the return metrics highlight ongoing challenges in converting assets into positive returns. The divergence between asset growth and profitability metrics suggests potential strategic or operational inefficiencies or increased investment in unprofitable ventures during the latter period.