Incyte Corporation (INCY)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	305,185	276,791	259,124	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
Inventory	US$ in thousands	58,872	70,442	63,642	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
Inventory turnover		5.18	3.93	4.07	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

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $305,185K ÷ $58,872K
= 5.18

The inventory turnover ratio of Incyte Corporation has exhibited fluctuations over the recorded periods. The inventory turnover ratio shows how many times a company's inventory is sold and replaced over a specific period. A higher turnover ratio usually indicates efficient inventory management.

In December 2019, the inventory turnover ratio was relatively high at 10.02, suggesting efficient management of inventory levels. However, this ratio decreased to 3.25 by June 2022, indicating a slowdown in the rate of inventory turnover. The ratio improved slightly in the subsequent periods but remained below the levels seen in early periods.

It is worth noting that a lower inventory turnover ratio could indicate overstocking or obsolete inventory, leading to increased carrying costs. Therefore, a sustained low turnover ratio may warrant further investigation into the company's inventory management practices to optimize working capital utilization and enhance operational efficiency.