Incyte Corporation (INCY)

Payables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	312,068	254,990	206,997	150,991	131,328
Payables	US$ in thousands	197,465	109,601	277,546	172,110	98,767
Payables turnover		1.58	2.33	0.75	0.88	1.33

December 31, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $312,068K ÷ $197,465K
= 1.58

The payables turnover ratio, which measures how efficiently Incyte Corporation is managing its trade payables, has fluctuated over the past five years.

In December 31, 2020, the payables turnover ratio was 1.33, indicating that the company turned over its trade payables approximately 1.33 times during that year. However, in the following year, December 31, 2021, the ratio decreased to 0.88, suggesting a decrease in the speed at which Incyte paid off its suppliers.

By December 31, 2022, the payables turnover ratio further declined to 0.75, signaling a prolonged payment period or potentially inefficient management of trade payables.

However, a significant improvement occurred by December 31, 2023, with the payables turnover ratio jumping to 2.33. This sharp increase suggests that Incyte Corporation managed to pay off its trade payables more frequently during that year.

In December 31, 2024, the payables turnover ratio decreased slightly to 1.58, still reflecting a relatively efficient management of trade payables, although not as high as the peak in 2023.

Overall, Incyte Corporation experienced fluctuations in its payables turnover ratio over the five-year period, indicating varying levels of efficiency in managing its trade payables. Further analysis of the company's payment practices and creditor relationships may provide insights into the underlying reasons for these fluctuations.