Incyte Corporation (INCY)

Inventory turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	254,990	244,402	238,895	221,205	206,997	191,708	176,993	164,385	150,991	143,440	137,893	133,229	131,328	127,220	122,938	118,980	114,249	108,400	103,155	98,605
Inventory	US$ in thousands	62,972	57,200	35,900	40,876	41,995	45,869	54,502	35,500	27,904	21,303	16,675	16,700	16,425	17,012	16,335	13,977	11,400	7,400	6,527	7,129
Inventory turnover		4.05	4.27	6.65	5.41	4.93	4.18	3.25	4.63	5.41	6.73	8.27	7.98	8.00	7.48	7.53	8.51	10.02	14.65	15.80	13.83

December 31, 2023 calculation

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

Incyte Corp.'s inventory turnover has shown fluctuations over the past eight quarters. The inventory turnover ratio measures how efficiently the company is managing its inventory by indicating how many times inventory is sold and replaced within a specific period.

The highest inventory turnover was in Q2 2023 at 6.65, indicating that Incyte Corp. sold and replaced its inventory approximately 6.65 times during that quarter. This suggests efficient management of inventory during that period.

However, the inventory turnover ratio declined in Q3 2023 to 4.27 and further decreased in Q4 2023 to 4.05. This may signal a slowdown in inventory turnover efficiency during the latter part of the year.

Comparing the current year's data to the previous year, there seems to have been improvements in inventory turnover, with Q2 and Q3 2023 showing better performance than the corresponding quarters in 2022.

Overall, Incyte Corp. should closely monitor its inventory turnover to ensure optimal inventory management practices, as fluctuations in this ratio can impact working capital and profitability.