Balance Sheet: Assets
The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.
Assets are resources controlled by the company as a result of past events and from which future economic benefits are expected to flow to the entity.
Cytokinetics Inc., consolidated balance sheet: assets
US$ in thousands
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 reveals several notable trends in the company's asset composition and liquidity position over the five-year period.
- Cash and Cash Equivalents
- The cash reserves fluctuated notably, starting at $42,256 thousand in 2018, decreasing to $36,433 thousand in 2019, before sharply increasing to a peak of $112,666 thousand in 2021. This was followed by a decline to $65,582 thousand in 2022. The 2021 peak suggests a significant enhancement in liquidity during that year.
- Short-term Investments
- Short-term investments exhibited strong growth, rising steadily from $156,475 thousand in 2018 to $381,075 thousand in 2020. Although there was a slight decrease to $358,972 thousand in 2021, the figure nearly doubled in 2022 to $716,995 thousand. This indicates an increasing allocation of liquid resources to short-term investments, enhancing potential returns on idle cash.
- Accounts Receivable
- Accounts receivable showed considerable volatility. After rising from $2,231 thousand in 2018 to $5,163 thousand in 2019, the value remained relatively stable through 2020 before surging to $51,819 thousand in 2021. However, it sharply dropped to $147 thousand in 2022. The spike in 2021 might reflect increased sales or changes in credit terms, while the subsequent decline could indicate improved collection or changes in business activities.
- Contract Assets
- Contract assets were only reported in 2018 at $4,554 thousand, with no data in subsequent years. This absence may imply a change in reporting practices or contract structures.
- Prepaid Expenses and Other Current Assets
- These assets increased progressively from $2,158 thousand in 2018 to $12,462 thousand in 2022, demonstrating a steady rise in prepayments and other current assets, which could be associated with growth or changes in operational activities.
- Current Assets
- Current assets more than tripled, rising from $207,674 thousand in 2018 to $795,186 thousand in 2022. This strong growth indicates a considerable expansion in asset liquidity and short-term resource availability over the period.
- Long-term Investments
- Long-term investments showed variability, starting at $42,650 thousand in 2019, dropping slightly to $36,954 thousand in 2020, then rising sharply to $152,050 thousand in 2021, before declining to $46,708 thousand in 2022. This pattern suggests active management of long-term investment portfolios with significant adjustments in 2021 and 2022.
- Property and Equipment, Net
- The net value of property and equipment expanded substantially, from $3,204 thousand in 2018 to $80,453 thousand in 2022. The most pronounced increases occurred between 2020 and 2021, likely reflecting capital expenditures or asset acquisitions during this period.
- Operating Lease Right-of-Use Assets
- These assets appeared in 2020 at $2,924 thousand and surged to $82,737 thousand by 2022. The rapid increase is consistent with the adoption of new lease accounting standards, resulting in the capitalization of significant lease obligations.
- Other Assets
- Other assets increased from $300 thousand in 2018 to $9,691 thousand in 2022, with variability over the years. This suggests gradual accumulation of miscellaneous or non-core assets.
- Non-current Assets
- Non-current assets rose significantly from $3,504 thousand in 2018 to a peak of $305,647 thousand in 2021, before declining to $219,589 thousand in 2022. The peak corresponds with the increases observed in property and equipment, lease assets, and long-term investments, while the subsequent decrease may relate to disposals or reclassifications.
- Total Assets
- Total assets sharply increased, from $211,178 thousand in 2018 to over $1 billion ($1,014,775 thousand) in 2022. This reflects substantial growth in both current and non-current assets, indicating overall expansion of the company's asset base during this timeframe.
Overall, the company demonstrated significant growth and increased asset accumulation, with notable investments in short-term and long-term financial instruments, property and equipment, and adoption of new lease-related assets. The volatility observed in accounts receivable and other asset categories suggests dynamic operational changes and financial management strategies over the period.