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- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common Stock Valuation Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2005
- Operating Profit Margin since 2005
- Current Ratio since 2005
- Debt to Equity since 2005
- Price to Book Value (P/BV) since 2005
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Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities
Cytokinetics Inc., adjustment to net loss
US$ in thousands
| 12 months ended: | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | |
|---|---|---|---|---|---|---|
| Net loss (as reported) | ||||||
| Add: Unrealized gain (loss) on available-for-sale securities, net | ||||||
| Net loss (adjusted) |
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).
The analyzed financial data reveals a consistent increase in both the reported and adjusted net losses over the five-year period from 2018 to 2022. This upward trend indicates a progressively worsening financial performance in terms of net profitability.
- Reported net loss
- There is a notable escalation in the reported net loss figures, starting from approximately $106.3 million in 2018 and increasing each year to reach nearly $389.0 million by the end of 2022. The increase is relatively steady, with a significant jump occurring between 2020 and 2021, and an even larger rise between 2021 and 2022.
- Adjusted net loss
- The adjusted net loss closely mirrors the reported net loss, exhibiting a similar upward trend. Beginning at about $106.1 million in 2018, it climbs gradually each year, with a sharp increase observed from 2020 to 2021 and a further substantial rise in 2022, culminating near $391.7 million. The close alignment between reported and adjusted figures suggests that adjustments have minimal impact on the overall loss trend.
Overall, the data indicates a considerable and consistent deterioration in net losses over the assessed periods, implying escalating expenses or reduced revenues impacting the company's financial health. The pronounced increases in losses during the last two years highlight potential operational or market challenges requiring strategic attention.
Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)
Cytokinetics Inc., adjusted profitability ratios
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).
The financial data over the five-year period reveal consistent negative profitability and returns, with some fluctuations in magnitude.
- Net Profit Margin
- The reported net profit margin exhibits significant negative values throughout the period. Starting at -337.41% in 2018, it worsened to a low of -452.93% in 2019, indicating heavy losses relative to revenues. In 2020, there was a notable improvement to -228%, yet it deteriorated again in the subsequent years to -305.72% in 2021 and further to -411.21% in 2022. The adjusted net profit margin follows a similar pattern, closely mirroring the reported values with minor deviations but maintaining the same overall trend of large negative margins.
- Return on Equity (ROE)
- The reported ROE data are incomplete, missing values for 2019 and 2022. The available figures show highly negative returns: -409.84% in 2018, improving to -112.27% in 2020 and -88.29% in 2021. The adjusted ROE values track similarly, suggesting that the company’s equity is being eroded substantially, though the negative impact lessened somewhat in later years. The absence of data for certain years limits trend analysis but the existing results indicate ongoing significant equity losses.
- Return on Assets (ROA)
- Both reported and adjusted ROA metrics reflect large negative returns throughout the period. The reported ROA started at -50.33% in 2018, improved to -41.99% in 2019 and further to -23.85% in 2020, signifying some efficiency gains in asset utilization or reduced losses. However, this positive trajectory reversed in 2021 and 2022 with declines to -25.59% and -38.33%, respectively. Adjusted ROA figures are consistent with the reported data, showing a comparable trend.
Overall, the analysis indicates that the company has consistently operated at substantial losses relative to its revenues, equity, and assets. Although there were intermittent improvements, especially around 2020, the financial performance remains poor with a return to more negative values by 2022. Both reported and adjusted financial measures suggest persistent challenges in achieving profitability and positive returns on invested capital.
Cytokinetics Inc., Profitability Ratios: Reported vs. Adjusted
Adjusted Net Profit Margin
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).
2022 Calculations
1 Net profit margin = 100 × Net loss ÷ Revenues
= 100 × ÷ =
2 Adjusted net profit margin = 100 × Adjusted net loss ÷ Revenues
= 100 × ÷ =
The financial data indicates a consistent increase in net losses for the company over the five-year period analyzed, from 2018 to 2022. Both reported and adjusted net losses have shown a steep worsening trend. Specifically, the reported net loss increased from approximately $106 million in 2018 to nearly $389 million in 2022, reflecting a significant decline in financial performance. Adjusted net loss figures closely mirror this pattern, confirming that adjustments have had a minimal impact on the overall loss trajectory.
Similarly, the net profit margins, measured as a percentage, show a pronounced negative trend. The reported net profit margin decreased from approximately -337% in 2018 to a more severe -411% in 2022. The adjusted net profit margin follows a nearly identical pattern, indicating that the profitability adjusted for specific items also declined steadily, worsening year over year.
- Reported net loss trends
- There is a clear acceleration in the magnitude of net losses over the period, with a marked jump after 2020, reaching nearly four times the initial value by 2022.
- Adjusted net loss trends
- The adjusted figure closely aligns with the reported losses across all years, suggesting limited adjustment effects and consistent underlying financial challenges.
- Reported net profit margin
- The company’s profitability ratio remained negative throughout, with the margin worsening from -337% to -411%, highlighting increasing losses relative to revenue.
- Adjusted net profit margin
- The adjusted margin shows a similar negative progression, from -337% to -414%, which supports the reported data and indicates no improvement through adjustments.
Overall, the data depicts a company experiencing deteriorating financial performance, characterized by rapidly increasing net losses and deepening negative profit margins, with no observable mitigation through adjustment measures in the reported years.
Adjusted Return on Equity (ROE)
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).
2022 Calculations
1 ROE = 100 × Net loss ÷ Stockholders’ equity (deficit)
= 100 × ÷ =
2 Adjusted ROE = 100 × Adjusted net loss ÷ Stockholders’ equity (deficit)
= 100 × ÷ =
The financial data reveals a consistent increase in both reported and adjusted net losses for the company over the five-year period from 2018 to 2022. Specifically, the reported net loss rose from approximately $106.3 million in 2018 to nearly $389.0 million in 2022, demonstrating a significant and accelerating negative trend. The adjusted net loss follows a similar pattern, starting at roughly $106.1 million and reaching approximately $391.7 million by 2022, indicating that adjustments to the net loss figures have minimal impact on the overall financial results.
Regarding profitability ratios, the reported return on equity (ROE) shows a highly negative value of -409.84% in 2018, with data missing for 2019, then improves somewhat but remains deeply negative at -112.27% in 2020 and -88.29% in 2021. Adjusted ROE figures track closely with the reported ROE, starting at -409.24% in 2018, with the same missing data point for 2019, followed by -112.73% in 2020 and -88.71% in 2021. Both metrics indicate very poor returns to equity holders, reflecting substantial losses relative to shareholder equity.
Overall, the data illustrates a deteriorating financial condition over the analyzed period, characterized by increasing losses and poor equity returns. The slight improvement in ROE from 2020 to 2021, although still negative, suggests some stabilization or reduced rate of loss increase in profitability measures. The absence of ROE data for 2019 limits a complete year-over-year evaluation. The alignment between reported and adjusted figures suggests that one-time or non-operational adjustments have a negligible effect on the financial outcomes.
Adjusted Return on Assets (ROA)
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).
2022 Calculations
1 ROA = 100 × Net loss ÷ Total assets
= 100 × ÷ =
2 Adjusted ROA = 100 × Adjusted net loss ÷ Total assets
= 100 × ÷ =
The financial data exhibits significant trends over the five-year period from 2018 to 2022. Both reported and adjusted net losses have increased substantially, indicating a worsening financial performance year over year.
- Net Loss Trends
- Reported net loss rose from approximately $106 million in 2018 to nearly $389 million in 2022, reflecting a near quadrupling of losses. Adjusted net losses follow a similar trajectory, increasing from around $106 million to approximately $392 million over the same period. The close alignment between reported and adjusted figures suggests that adjustments have a consistent but relatively minor effect on the loss values.
- Return on Assets (ROA) Trends
- Return on assets, measured both on a reported and adjusted basis, displays a deteriorating trend as well. The reported ROA improved slightly from -50.33% in 2018 to -23.85% in 2020 but then reversed course and worsened significantly to -38.33% by 2022. Adjusted ROA shows a similar pattern with a moderate improvement through 2020 but subsequent decline to -38.6% in 2022. This pattern suggests challenges in asset utilization and profitability over the later periods.
- Overall Insights
- The increasing net losses coupled with decreasing return on assets indicate growing operational difficulties. There is a clear escalation in financial losses starting from 2020 onwards, peaking significantly in 2022. While some improvement in ROA was observed up to 2020, the downward trend from 2021 suggests potential issues in managing assets effectively to generate returns. The consistency between reported and adjusted figures implies that the core financial challenges are inherent and not primarily related to accounting adjustments.