Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
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- Income Statement
- Cash Flow Statement
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Operating Profit Margin since 2005
- Total Asset Turnover since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Revenues
- Aggregate Accruals
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Liquidity Ratios (Summary)
Cytokinetics Inc., liquidity ratios
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Current ratio | ||||||
| Quick ratio | ||||||
| Cash ratio |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
- Current Ratio
- The current ratio exhibited a fluctuating trend over the five-year period. It started at 9.36 in 2018, slightly decreased to 8.98 in 2019, then sharply increased to a peak of 15.2 in 2020. This was followed by a significant decline to 7.45 in 2021, before rising again to 9.4 in 2022. Overall, the current ratio remained well above typical benchmark levels, indicating a strong liquidity position throughout the period, despite the volatility.
- Quick Ratio
- The quick ratio followed a pattern closely mirroring that of the current ratio. It began at 9.05 in 2018, dipped marginally to 8.85 in 2019, then surged to 15.02 in 2020. Subsequently, it dropped to 7.28 in 2021 and experienced a recovery to 9.25 in 2022. This movement suggests consistently strong liquid assets relative to current liabilities, with a notable peak in 2020 and a subsequent adjustment in the following years.
- Cash Ratio
- The cash ratio showed a similar trajectory to both the current and quick ratios. Starting at 8.95 in 2018, it decreased slightly to 8.65 in 2019, then increased dramatically to 14.87 in 2020. A decrease to 6.56 was observed in 2021, followed by a recovery to 9.25 in 2022. This ratio highlights a substantial amount of cash and cash equivalents relative to current liabilities, with a distinct peak in 2020 and a dip in 2021, before moderately rebounding in 2022.
- Overall Analysis
- Liquidity ratios demonstrate a pattern of significant strengthening in 2020 across all measures, reaching their highest points, followed by a pronounced decline in 2021. The partial recovery in 2022 reflects an improvement but not a return to the peak levels of 2020. These fluctuations could indicate periods of strategic cash accumulation or release, changes in working capital management, or responses to external factors affecting liquidity needs. Despite these variations, the ratios consistently indicate a robust liquidity position throughout the period analyzed.
Current Ratio
Cytokinetics Inc., current ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current assets | ||||||
| Current liabilities | ||||||
| Liquidity Ratio | ||||||
| Current ratio1 | ||||||
| Benchmarks | ||||||
| Current Ratio, Competitors2 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| Current Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| Current Ratio, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current Assets
- Current assets displayed a consistent upward trend over the five-year period. Starting at $207,674 thousand in 2018, the amount increased progressively each subsequent year, reaching $795,186 thousand in 2022. This significant growth indicates a strengthening liquidity position and an increased availability of short-term assets to meet immediate obligations.
- Current Liabilities
- Current liabilities also rose during the period but at a notably slower and less consistent rate compared to current assets. Beginning at $22,194 thousand in 2018, liabilities increased gradually through 2020 and then exhibited a sharper rise in 2021 to $71,860 thousand, followed by a modest increase to $84,617 thousand in 2022. This increase suggests a growing level of short-term obligations.
- Current Ratio
- The current ratio, reflecting the relationship between current assets and current liabilities, showed some variability. It started high at 9.36 in 2018 and slightly declined to 8.98 in 2019. There was a peak in 2020 at 15.2 followed by a sharp decrease to 7.45 in 2021. The ratio then improved to 9.4 in 2022. Despite fluctuations, the ratio consistently remained well above the standard benchmark of 1, signaling strong liquidity throughout the period.
- Overall Analysis
- The overall financial position with respect to liquidity appears strong and improving, as indicated by the increasing current assets outpacing the growth of current liabilities. The fluctuations in the current ratio highlight periods of varying liquidity strength, particularly the notable decline in 2021, which may warrant further review to understand the underlying causes. However, the ratio levels indicate that the company maintained sufficient short-term asset coverage against its short-term obligations over the analyzed years.
Quick Ratio
Cytokinetics Inc., quick ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and cash equivalents | ||||||
| Short-term investments | ||||||
| Accounts receivable | ||||||
| Total quick assets | ||||||
| Current liabilities | ||||||
| Liquidity Ratio | ||||||
| Quick ratio1 | ||||||
| Benchmarks | ||||||
| Quick Ratio, Competitors2 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| Quick Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| Quick Ratio, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total quick assets
- The total quick assets demonstrated a consistently increasing trend throughout the analyzed periods. Starting from approximately 201 million US dollars in 2018, these assets increased to 230 million in 2019. There was a significant leap in 2020, nearly doubling to 468 million. This upward trajectory continued with amounts of 523 million in 2021 and 783 million in 2022, reflecting a strong liquidity position and growth in immediately available assets over time.
- Current liabilities
- Current liabilities showed a gradual increase from 2018 through 2020, moving from about 22.2 million to nearly 31.2 million US dollars. However, a substantial rise is observed in 2021, when liabilities more than doubled to 71.9 million, followed by a further increase to 84.6 million in 2022. This sharp growth in obligations indicates heightened short-term financial commitments in the most recent years.
- Quick ratio
- The quick ratio exhibited notable fluctuations during the periods studied. The ratio was relatively high and stable around 9.0 in 2018 and 2019. It peaked significantly in 2020 at 15.02, suggesting an exceptionally strong liquidity buffer relative to current liabilities during that year. Subsequently, there was a marked decline to 7.28 in 2021, indicating a reduction in liquidity relative to liabilities, though the ratio improved again to 9.25 in 2022. Despite this variation, the quick ratio remained above conventional healthy liquidity levels in each year analyzed.
- Overall Insights
- The data indicates a company that has progressively increased its quick assets over five years, remaining well-positioned to meet short-term obligations despite a steep rise in current liabilities in 2021 and 2022. The elevated liquidity in 2020 suggests an accumulation or retention of liquid assets possibly in response to external factors. Although the quick ratio dipped significantly in 2021, it rebounded in the following year, reflecting adjustments in asset-liability management. The trends imply an adaptive financial strategy focused on maintaining adequate liquidity amidst growing financial commitments.
Cash Ratio
Cytokinetics Inc., cash ratio calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Cash and cash equivalents | ||||||
| Short-term investments | ||||||
| Total cash assets | ||||||
| Current liabilities | ||||||
| Liquidity Ratio | ||||||
| Cash ratio1 | ||||||
| Benchmarks | ||||||
| Cash Ratio, Competitors2 | ||||||
| AbbVie Inc. | ||||||
| Amgen Inc. | ||||||
| Bristol-Myers Squibb Co. | ||||||
| Danaher Corp. | ||||||
| Eli Lilly & Co. | ||||||
| Gilead Sciences Inc. | ||||||
| Johnson & Johnson | ||||||
| Merck & Co. Inc. | ||||||
| Pfizer Inc. | ||||||
| Regeneron Pharmaceuticals Inc. | ||||||
| Thermo Fisher Scientific Inc. | ||||||
| Vertex Pharmaceuticals Inc. | ||||||
| Cash Ratio, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | ||||||
| Cash Ratio, Industry | ||||||
| Health Care | ||||||
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Cash Assets
- The total cash assets have shown a consistent upward trend over the five-year period. Starting at $198.7 million in 2018, there was a moderate increase to $225.1 million in 2019. This growth accelerated significantly in 2020, with an increase to $464.1 million, more than doubling the prior year’s amount. The upward trajectory continued in 2021, reaching $471.6 million, followed by a substantial increase in 2022 to $782.6 million. Overall, the data indicates strong growth in liquidity resources year-over-year.
- Current Liabilities
- Current liabilities have increased at a more moderate pace compared to cash assets. Beginning at $22.2 million in 2018, liabilities rose steadily to $26.0 million in 2019 and then $31.2 million in 2020. There was a notable jump in 2021 to $71.9 million, more than doubling the previous year’s amount. The trend continued with a further increase to $84.6 million in 2022. This pattern suggests rising short-term obligations, with particularly sharp growth in the last two reported years.
- Cash Ratio
- The cash ratio exhibited fluctuations over the review period. In 2018, the company maintained a very high cash ratio of 8.95, indicating liquid assets were nearly nine times current liabilities. This ratio slightly decreased to 8.65 in 2019 but surged to a peak of 14.87 in 2020, reflecting a significant rise in liquidity relative to liabilities. In 2021, the ratio dropped markedly to 6.56, showing a relative decrease in cash coverage against current liabilities. In 2022, it rebounded to 9.25, indicating an improvement in liquidity position compared to the prior year but not reaching the peak levels observed in 2020.