Incyte Corporation (INCY)

Payables 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
Payables	US$ in thousands	197,465	178,710	164,238	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
Payables turnover		1.55	1.55	1.58	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

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $305,185K ÷ $197,465K
= 1.55

Incyte Corporation's payables turnover ratio has shown fluctuations over the period indicated. The payables turnover ratio is an indication of how efficiently a company manages its payments to suppliers. A higher ratio suggests that the company is paying its suppliers more quickly.

From December 31, 2019, to December 31, 2024, Incyte Corporation's payables turnover ranged from a low of 0.75 to a high of 3.98. The ratio experienced significant variability, indicating changes in the company's payment practices and relationship with suppliers.

During this period, there were periods of both improvement and deterioration in payables turnover. For instance, the ratio increased from March 31, 2023, to December 31, 2023, suggesting that the company was paying its creditors more efficiently during this time.

However, the ratio dropped from December 31, 2023, to December 31, 2024, indicating a potential delay in payments to suppliers, which may have implications for supplier relationships and cash flow management.

Overall, Incyte Corporation's payables turnover ratio demonstrates fluctuations in its payment practices, highlighting the importance of monitoring and managing relationships with suppliers to ensure efficient liquidity management.