Return on Equity (ROE)
since 2005
Calculation
Cytokinetics Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss)1 | ÷ | Stockholders’ equity (deficit)1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | — | = | 100 | × | (388,955) | ÷ | (107,900) |
| Dec 31, 2021 | -88.29% | = | 100 | × | (215,314) | ÷ | 243,863) |
| Dec 31, 2020 | -112.27% | = | 100 | × | (127,290) | ÷ | 113,383) |
| Dec 31, 2019 | — | = | 100 | × | (121,692) | ÷ | (10,937) |
| Dec 31, 2018 | -409.84% | = | 100 | × | (106,289) | ÷ | 25,934) |
| Dec 31, 2017 | -116.34% | = | 100 | × | (127,790) | ÷ | 109,842) |
| Dec 31, 2016 | 17.44% | = | 100 | × | 16,453) | ÷ | 94,361) |
| Dec 31, 2015 | -54.67% | = | 100 | × | (37,501) | ÷ | 68,590) |
| Dec 31, 2014 | -15.91% | = | 100 | × | (14,646) | ÷ | 92,064) |
| Dec 31, 2013 | -61.93% | = | 100 | × | (33,717) | ÷ | 54,442) |
| Dec 31, 2012 | -57.60% | = | 100 | × | (40,370) | ÷ | 70,085) |
| Dec 31, 2011 | -99.34% | = | 100 | × | (47,860) | ÷ | 48,178) |
| Dec 31, 2010 | -69.89% | = | 100 | × | (49,287) | ÷ | 70,516) |
| Dec 31, 2009 | 24.20% | = | 100 | × | 24,544) | ÷ | 101,428) |
| Dec 31, 2008 | -113.28% | = | 100 | × | (56,374) | ÷ | 49,766) |
| Dec 31, 2007 | -48.94% | = | 100 | × | (48,894) | ÷ | 99,916) |
| Dec 31, 2006 | -53.72% | = | 100 | × | (57,115) | ÷ | 106,313) |
| Dec 31, 2005 | -57.44% | = | 100 | × | (42,252) | ÷ | 73,561) |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in thousands
The financial performance from 2005 to 2022 is characterized by persistent net losses and extreme volatility in Return on Equity (ROE). Net losses were a recurring feature throughout the period, with only two instances of profitability occurring in 2009 and 2016.
- Profitability and Net Income Trends
- Net income remained negative for the vast majority of the observed timeframe. Losses were relatively contained between 2005 and 2016, but a significant escalation in losses began in 2017. This downward trend accelerated through 2022, where net losses reached a peak of 388.9 million USD.
- Return on Equity (ROE) Volatility
- ROE exhibited severe fluctuations, reflecting the instability of net income relative to the equity base. Positive ROE was achieved only in 2009 (24.20%) and 2016 (17.44%), correlating directly with the only two years of positive net income. The most acute deterioration occurred in 2018, when ROE dropped to -409.84%, driven by substantial losses coinciding with a diminished equity position.
- Equity Position and Metric Reliability
- Stockholders' equity demonstrated instability, fluctuating from positive values to deficits in 2019 and 2022. The lack of reported ROE values during these specific years is a result of the negative equity positions, which renders the traditional ROE calculation mathematically non-representative of actual performance.
- Long-term Financial Trajectory
- A consistent pattern is observed where widening operational losses have outpaced equity accumulation. The transition from moderate losses in the early 2000s to substantial losses in the early 2020s has led to an erosion of the capital base, resulting in an increasingly unstable return profile.
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Comparison to Competitors
Cytokinetics Inc., ROE, long-term trends, comparison to competitors
| Cytokinetics Inc. | 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. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2022 | — | 68.60% | 178.97% | 20.37% | 14.39% | 58.64% | 21.62% | 23.36% | 31.57% | 32.79% | 19.14% | 15.80% | 23.88% |
| Dec 31, 2021 | -88.29% | 74.91% | 87.96% | 19.46% | 14.24% | 62.16% | 29.55% | 28.20% | 34.17% | 28.47% | 43.03% | 18.94% | 23.19% |
| Dec 31, 2020 | -112.27% | 35.30% | 77.20% | -23.84% | 9.17% | 109.79% | 0.68% | 23.25% | 27.91% | 15.21% | 31.86% | 18.47% | 31.22% |
| Dec 31, 2019 | — | — | 81.07% | 6.66% | 9.94% | 319.09% | 23.91% | 25.42% | 37.99% | 25.77% | 19.08% | 12.45% | 19.34% |
| Dec 31, 2018 | -409.84% | — | 67.15% | 35.07% | 9.40% | 32.88% | 25.51% | 25.60% | 23.30% | 17.59% | 27.91% | 10.65% | 47.28% |
| Dec 31, 2017 | -116.34% | 104.16% | 7.84% | 8.58% | 9.45% | -1.76% | 22.64% | 2.16% | 6.97% | 29.47% | 19.51% | 8.76% | 12.99% |
| Dec 31, 2016 | 17.44% | 128.41% | 25.85% | 27.55% | 11.10% | 19.54% | 71.48% | 23.49% | 9.78% | 12.12% | 20.13% | 9.39% | -9.69% |
| Dec 31, 2015 | -54.67% | 130.39% | 24.71% | 10.97% | 14.17% | 16.53% | 97.70% | 21.66% | 9.94% | 10.75% | 17.40% | 9.25% | -59.19% |
| Dec 31, 2014 | -15.91% | 101.84% | 20.01% | 13.49% | 11.11% | 15.55% | 78.45% | 23.40% | 24.50% | 12.81% | 13.69% | 9.22% | -68.70% |
| Dec 31, 2013 | -61.93% | 91.90% | 23.00% | 16.91% | 12.04% | 26.57% | 27.05% | 18.68% | 8.85% | 28.83% | 21.74% | 7.55% | -32.81% |
| Dec 31, 2012 | -57.60% | 156.85% | 22.80% | 14.39% | 12.58% | 27.69% | 27.84% | 16.74% | 11.63% | 17.93% | 60.24% | 7.62% | -10.71% |
| Dec 31, 2011 | -99.34% | — | 19.35% | 23.25% | 12.85% | 32.11% | 41.60% | 16.94% | 11.50% | 12.18% | -45.65% | 8.84% | 3.76% |
| Dec 31, 2010 | -69.89% | — | 19.32% | 19.74% | 13.08% | 40.82% | 49.48% | 23.57% | 1.58% | 9.40% | -19.79% | 6.74% | -149.74% |
| Dec 31, 2009 | 24.20% | — | 20.32% | 71.49% | 9.90% | 45.45% | 41.40% | 24.25% | 21.85% | 9.59% | -17.10% | 5.51% | -58.57% |
| Dec 31, 2008 | -113.28% | — | 20.58% | 42.86% | 13.43% | -30.76% | 48.43% | 30.46% | 41.63% | 14.08% | -19.75% | 6.66% | -192.51% |
| Dec 31, 2007 | -48.94% | — | 17.72% | 20.50% | 15.08% | 21.61% | 46.69% | 24.41% | 18.01% | 12.53% | -22.94% | 5.25% | -144.23% |
| Dec 31, 2006 | -53.72% | — | 15.56% | 15.86% | 16.89% | 24.25% | -65.54% | 28.11% | 25.25% | 27.10% | -47.24% | 1.21% | -40.89% |
| Dec 31, 2005 | -57.44% | — | 17.96% | 26.77% | 17.67% | 18.34% | 26.88% | 27.49% | 25.85% | 12.32% | -83.72% | 7.99% | -85.05% |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Pharmaceuticals, Biotechnology & Life Sciences)
Cytokinetics Inc., ROE, long-term trends, comparison to sector (pharmaceuticals, biotechnology & life sciences)
| Cytokinetics Inc. | Pharmaceuticals, Biotechnology & Life Sciences | |
|---|---|---|
| Dec 31, 2022 | — | 27.99% |
| Dec 31, 2021 | -88.29% | 29.75% |
| Dec 31, 2020 | -112.27% | 17.22% |
| Dec 31, 2019 | — | 27.68% |
| Dec 31, 2018 | -409.84% | 26.29% |
| Dec 31, 2017 | -116.34% | 14.59% |
| Dec 31, 2016 | 17.44% | 22.19% |
| Dec 31, 2015 | -54.67% | 21.44% |
| Dec 31, 2014 | -15.91% | 20.91% |
| Dec 31, 2013 | -61.93% | 20.33% |
| Dec 31, 2012 | -57.60% | 18.27% |
| Dec 31, 2011 | -99.34% | 15.52% |
| Dec 31, 2010 | -69.89% | 13.99% |
| Dec 31, 2009 | 24.20% | 20.34% |
| Dec 31, 2008 | -113.28% | 21.31% |
| Dec 31, 2007 | -48.94% | 17.07% |
| Dec 31, 2006 | -53.72% | 21.86% |
| Dec 31, 2005 | -57.44% | 19.08% |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Health Care)
Cytokinetics Inc., ROE, long-term trends, comparison to industry (health care)
| Cytokinetics Inc. | Health Care | |
|---|---|---|
| Dec 31, 2022 | — | 24.82% |
| Dec 31, 2021 | -88.29% | 25.44% |
| Dec 31, 2020 | -112.27% | 16.70% |
| Dec 31, 2019 | — | 23.30% |
| Dec 31, 2018 | -409.84% | 21.27% |
| Dec 31, 2017 | -116.34% | 13.77% |
| Dec 31, 2016 | 17.44% | 18.53% |
| Dec 31, 2015 | -54.67% | 18.52% |
| Dec 31, 2014 | -15.91% | 19.17% |
| Dec 31, 2013 | -61.93% | 18.81% |
| Dec 31, 2012 | -57.60% | 18.20% |
| Dec 31, 2011 | -99.34% | 15.90% |
| Dec 31, 2010 | -69.89% | 14.85% |
| Dec 31, 2009 | 24.20% | 20.14% |
| Dec 31, 2008 | -113.28% | 20.29% |
| Dec 31, 2007 | -48.94% | 17.87% |
| Dec 31, 2006 | -53.72% | 20.49% |
| Dec 31, 2005 | -57.44% | 18.28% |
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), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).