Incyte Corporation (INCY)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	3,693,100	3,394,640	2,986,270	2,666,700	2,158,760
Property, plant and equipment	US$ in thousands	751,513	739,310	723,920	559,625	377,567
Fixed asset turnover		4.91	4.59	4.13	4.77	5.72

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,693,100K ÷ $751,513K
= 4.91

Fixed asset turnover is a financial ratio that measures a company's efficiency in generating sales revenue from its investment in fixed assets. Looking at Incyte Corp.'s fixed asset turnover over the past five years, we observe a fluctuating trend.

In 2023, the fixed asset turnover ratio stood at 4.92, a slight increase from the previous year's 4.74. This indicates that for every $1 of fixed assets invested, the company generated $4.92 in sales. The upward trend suggests an improvement in the efficiency of utilizing fixed assets to drive revenue.

In 2022, the ratio was 4.74, down from 4.29 in 2021. Despite the decrease, the company still managed to generate $4.74 in sales for each $1 of fixed assets.

In 2021, the fixed asset turnover was 4.29, showing a decline from the previous year's 5.00. This reduction suggests a decrease in the company's ability to efficiently convert fixed assets into sales revenue.

In 2020, the fixed asset turnover ratio was 5.00, a decrease from the 6.03 recorded in 2019. This decline indicates a less efficient utilization of fixed assets to generate sales revenue compared to the previous year.

The highest fixed asset turnover ratio of 6.03 was observed in 2019, indicating that during that period, the company generated $6.03 in sales for every $1 invested in fixed assets, reflecting strong efficiency in asset utilization.

Overall, Incyte Corp.'s fixed asset turnover ratio has displayed some fluctuations over the past five years, with varying levels of efficiency in converting fixed assets into sales revenue. It is essential for the company to continue monitoring and improving this ratio to enhance operational performance and profitability.