Incyte Corporation (INCY)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,693,100 | 3,394,640 | 2,986,270 | 2,666,700 | 2,158,760 |
| Total assets | US$ in thousands | 6,782,110 | 5,840,980 | 4,933,350 | 3,560,920 | 3,426,750 |
| Total asset turnover | 0.54 | 0.58 | 0.61 | 0.75 | 0.63 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $3,693,100K ÷ $6,782,110K
= 0.54
The total asset turnover ratio for Incyte Corp. has exhibited a declining trend over the past five years, decreasing from 0.63 in 2019 to 0.54 in 2023. This indicates that the company generated $0.54 in revenue for every dollar of assets in 2023. The declining trend suggests that the company may be becoming less efficient in utilizing its assets to generate sales.
A total asset turnover ratio below 1.0 typically indicates that the company is not effectively utilizing its assets to generate revenue. In this case, the decreasing ratio suggests that Incyte Corp. may be experiencing challenges in efficiently using its assets to drive sales growth. It is important for the company to carefully assess its asset management strategies and consider ways to improve operational efficiency to enhance its total asset turnover ratio in the future.
Peer comparison
Dec 31, 2023