Incyte Corporation (INCY)

Payables 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
Payables	US$ in thousands	109,601	277,546	172,110	98,767	83,647
Payables turnover		2.33	0.75	0.88	1.33	1.37

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $254,990K ÷ $109,601K
= 2.33

The payables turnover ratio for Incyte Corp. has fluctuated over the past five years, indicating variability in the company's management of its accounts payable.

1. In 2023, the payables turnover ratio improved to 2.33, representing a significant increase compared to the previous year. This suggests that Incyte Corp. was able to repay its suppliers more frequently during the year, which may reflect better working capital management or negotiating more favorable payment terms.

2. The ratio was lower in 2022 at 0.75, indicating that the company took longer to pay off its suppliers relative to its purchases. This could be a potential concern as it may signal liquidity issues or inefficiencies in managing payables.

3. Similarly, in 2021, the payables turnover ratio was 0.88, showing a slight improvement from the previous year but still indicating a relatively slow rate of paying off suppliers compared to the volume of purchases made.

4. The payables turnover ratio was higher in 2020 at 1.33, suggesting a better performance in managing payables than in 2021. However, the ratio dropped compared to 2019, indicating a decrease in the frequency of paying off suppliers.

5. In 2019, the payables turnover ratio was 1.37, indicating a relatively stable performance in managing accounts payable during that year.

Overall, fluctuations in the payables turnover ratio for Incyte Corp. over the five-year period may indicate changes in the company's payment practices, liquidity position, or supplier relationships. Further analysis of the company's financial statements and industry context would be necessary to fully evaluate the implications of these changes.