Incyte Corporation (INCY)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	254,990	206,997	150,991	131,328	114,249
Inventory	US$ in thousands	62,972	41,995	27,904	16,425	11,400
Inventory turnover		4.05	4.93	5.41	8.00	10.02

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $254,990K ÷ $62,972K
= 4.05

The inventory turnover ratio for Incyte Corp. has exhibited a declining trend over the past five years, decreasing from 10.02 in 2019 to 4.05 in 2023. This decline indicates that the company is taking longer to sell its inventory compared to previous years. A lower inventory turnover ratio could imply potential issues such as overstocking, slow sales, or inefficient inventory management.

While a decreasing trend in inventory turnover may raise concerns about the company's operational efficiency and liquidity, it is essential to consider industry norms and the company's specific business model when interpreting this ratio. Further analysis of the company's financial statements and operational performance would be necessary to gain a more comprehensive understanding of the factors contributing to the changes in inventory turnover.