Incyte Corporation (INCY)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover — — — — — — — — — — — — — — — — — — — —
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
Working capital turnover 2.64 3.02 1.09 1.08 1.10 1.12 1.17 1.16 1.18 1.23 1.30 1.32 1.34 1.39 1.48 1.54 1.58 1.57 1.84 1.10

Incyte Corporation's inventory turnover has been on a decreasing trend from 10.02 on December 31, 2019, to 5.18 on December 31, 2024. This indicates that the company is taking longer to sell its inventory over time, which may be a concerning sign of potential issues in managing inventory levels efficiently.

The receivables turnover ratio is not available for the analyzed period, suggesting that data on the efficiency of collecting receivables is not provided. However, companies typically aim for a high receivables turnover ratio to ensure timely collection of outstanding payments.

Payables turnover for Incyte Corporation varied over the analyzed period, ranging from 0.75 on December 31, 2022, to 3.98 on March 31, 2023. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which could be beneficial for managing cash flow effectively.

The working capital turnover ratio for Incyte Corporation has been relatively stable, ranging from 1.08 on December 31, 2023, to 2.64 on December 31, 2024. This suggests that the company is efficiently utilizing its working capital to generate sales revenue, which is a positive indicator of operational efficiency.

Average number of days

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
Days of inventory on hand (DOH) days 70.41 92.89 89.65 90.14 85.42 54.85 67.45 74.05 87.33 112.40 78.82 67.45 54.21 44.14 45.75 45.65 48.81 48.50 42.88 36.42
Days of sales outstanding (DSO) days — — — — — — — — — — — — — — — — — — — —
Number of days of payables days 236.17 235.66 231.34 156.89 208.20 237.64 91.80 489.40 310.67 401.66 338.71 416.05 291.38 323.20 233.03 274.50 351.49 269.91 186.94 267.23

Incyte Corporation's activity ratios show fluctuations in the efficiency of its inventory management and accounts receivable collection processes over the years.

- Days of Inventory on Hand (DOH): This ratio indicates the number of days it takes for the company to sell through its inventory. Incyte Corporation's DOH ranged from as low as 36.42 days on December 31, 2019, to as high as 112.40 days on June 30, 2022. While a lower DOH is generally favorable as it suggests faster inventory turnover, the significant increase in DOH in mid-2022 indicates potential issues with managing inventory levels efficiently.

- Days of Sales Outstanding (DSO): Unfortunately, no data is available for DSO, which could provide insights into how quickly the company is collecting payments from its customers. Typically, a lower DSO is preferred as it indicates faster cash conversion from sales.

- Number of Days of Payables: This ratio shows how long it takes for Incyte Corporation to pay its suppliers. The number of days of payables has fluctuated significantly, from a low of 91.80 days on March 31, 2023, to a high of 489.40 days on December 31, 2022. An increase in days of payables may suggest that the company is taking longer to pay its bills, which could impact relationships with suppliers.

Overall, Incyte Corporation needs to focus on optimizing its inventory management practices to reduce excess inventory levels and improving its payables turnover to ensure healthy vendor relationships and cash flow management.

Long-term

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
Fixed asset turnover 5.51 5.11 5.23 4.91 4.92 4.69 4.68 4.59 4.65 4.60 4.27 4.13 4.24 4.11 4.55 4.77 4.93 5.26 5.44 5.72
Total asset turnover 0.77 0.79 0.53 0.54 0.56 0.57 0.60 0.58 0.60 0.62 0.62 0.61 0.69 0.70 0.74 0.75 0.74 0.74 0.81 0.63

The fixed asset turnover ratio for Incyte Corporation has exhibited a gradual decline from 5.72 at the end of December 2019 to 5.11 at the end of September 2024, indicating a decreasing efficiency in generating sales from fixed assets over this period. However, there was a slight increase to 5.51 at the end of December 2024.

On the other hand, the total asset turnover ratio fluctuated during the same period, starting at 0.63 in December 2019, reaching a peak of 0.81 in March 2020, and then fluctuating before a significant increase to 0.79 at the end of September 2024. This ratio represents the company's ability to generate revenue relative to its total assets.

Overall, the trend in the fixed asset turnover ratio suggests that Incyte Corporation may need to focus on improving the efficiency of utilizing its fixed assets to generate sales. Conversely, the fluctuating trend in the total asset turnover ratio indicates variability in the company's overall asset utilization efficiency, with a notable improvement towards the end of the period.