Incyte Corporation (INCY)

Payables 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
Payables	US$ in thousands	109,601	139,411	155,538	55,633	277,546	163,175	194,770	152,547	172,110	114,509	122,100	85,058	98,767	122,512	90,909	60,937	83,647	95,376	66,184	70,363
Payables turnover		2.33	1.75	1.54	3.98	0.75	1.17	0.91	1.08	0.88	1.25	1.13	1.57	1.33	1.04	1.35	1.95	1.37	1.14	1.56	1.40

December 31, 2023 calculation

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

The payables turnover ratio measures how efficiently a company is managing its accounts payable by calculating how many times a company pays off its average accounts payable balance in a given period.

Incyte Corp.'s payables turnover ratio fluctuated over the past eight quarters, ranging from a low of 0.75 in Q4 2022 to a high of 3.98 in Q1 2023. This indicates variability in the company's ability to manage its payables effectively.

The significant increase in the payables turnover ratio from Q4 2022 to Q1 2023 (from 0.75 to 3.98) suggests that Incyte Corp. improved its efficiency in paying off its accounts payable during Q1 2023. This could be due to better cash flow management or negotiation of more favorable payment terms with suppliers during that period.

Overall, it is important for Incyte Corp. to monitor its payables turnover ratio consistently to ensure it is maintaining a healthy balance between managing payables effectively without straining the company's liquidity.