Incyte Corporation (INCY)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 5.30 | 4.05 | 4.93 | 5.41 | 8.00 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | 1.58 | 2.33 | 0.75 | 0.88 | 1.33 |
| Working capital turnover | 2.66 | 1.08 | 1.16 | 1.32 | 1.54 |
Incyte Corporation's inventory turnover indicates a decreasing trend over the past five years, from 8.00 in 2020 to 5.30 in 2024. This suggests that the company is selling its inventory at a slower rate, which could potentially lead to excess or obsolete inventory.
The receivables turnover data is not provided, which limits our ability to evaluate how efficiently Incyte is collecting its accounts receivables from customers. Without this information, it is challenging to gauge the effectiveness of the company's credit and collection policies.
The payables turnover ratio shows fluctuations over the period, with a low of 0.75 in 2022 and a high of 2.33 in 2023. A higher payables turnover ratio may indicate that the company is taking longer to pay its suppliers, potentially signaling strained relationships or cash flow issues.
Incyte's working capital turnover has varied over the years, with a consistent downward trend from 1.54 in 2020 to 2.66 in 2024. A decreasing working capital turnover ratio may suggest inefficiencies in generating sales relative to the amount of working capital invested in the business.
Overall, the activity ratios reveal that Incyte Corporation may be facing challenges in managing its inventory effectively, maintaining stable supplier relationships, and optimizing its working capital turnover. These aspects are critical for the company's operational efficiency and financial performance.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 68.86 | 90.14 | 74.05 | 67.45 | 45.65 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | 230.96 | 156.89 | 489.40 | 416.05 | 274.50 |
Activity ratios provide insight into how efficiently a company is managing its operations and assets.
1. Days of Inventory on Hand (DOH):
- Incyte Corporation's DOH has been increasing over the years, indicating that the company is holding inventory for a longer period before it is sold.
- The increase from 45.65 days in 2020 to 90.14 days in 2023 suggests potential issues with inventory management or slowing sales.
2. Days of Sales Outstanding (DSO):
- The data provided does not include information on DSO for Incyte Corporation for any of the years, which limits the analysis of the company's efficiency in collecting accounts receivable.
3. Number of Days of Payables:
- The number of days of payables for Incyte Corporation shows fluctuations over the years, ranging from a high of 489.40 days in 2022 to a low of 156.89 days in 2023.
- A significant increase in payables days can indicate that the company is taking longer to pay its suppliers, which may have implications for supplier relationships.
Overall, the analysis of Incyte Corporation's activity ratios suggests potential inefficiencies in inventory management and fluctuations in payment terms with suppliers. These factors can impact the company's working capital and overall financial performance.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 5.56 | 4.91 | 4.59 | 4.13 | 4.77 |
| Total asset turnover | 0.78 | 0.54 | 0.58 | 0.61 | 0.75 |
Incyte Corporation's fixed asset turnover ratio has shown variations over the years, decreasing from 4.77 in 2020 to 4.13 in 2021, then increasing to 4.59 in 2022, 4.91 in 2023, and finally reaching 5.56 in 2024. This indicates that the company is generating more revenue relative to its investment in fixed assets in recent years, with a notable improvement in efficiency in utilizing its fixed assets for revenue generation.
On the other hand, Incyte Corporation's total asset turnover ratio reflects a declining trend from 0.75 in 2020 to 0.61 in 2021, further decreasing to 0.58 in 2022 and 0.54 in 2023, before experiencing a slight increase to 0.78 in 2024. This suggests that the company's overall efficiency in generating sales from its total assets decreased initially but showed a positive uptick in 2024, indicating potential improvements in asset utilization efficiency.
Overall, Incyte Corporation's long-term activity ratios reveal a mixed performance in asset turnover efficiency, with the fixed asset turnover showing an improving trend while the total asset turnover experienced fluctuations before seeing a positive development in the most recent year.