Incyte Corporation (INCY)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,241,220 | 3,693,100 | 3,394,640 | 2,986,270 | 2,666,700 |
| Total current assets | US$ in thousands | 3,239,030 | 4,645,400 | 4,092,850 | 3,118,670 | 2,359,890 |
| Total current liabilities | US$ in thousands | 1,641,850 | 1,240,380 | 1,157,080 | 854,308 | 631,195 |
| Working capital turnover | 2.66 | 1.08 | 1.16 | 1.32 | 1.54 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,241,220K ÷ ($3,239,030K – $1,641,850K)
= 2.66
The working capital turnover ratio for Incyte Corporation has shown a mixed trend over the past five years. Starting at 1.54 in December 31, 2020, it experienced a decrease to 1.32 by December 31, 2021, indicating a slightly less efficient management of working capital during this period. This trend continued with a further decline to 1.16 by December 31, 2022, and 1.08 by December 31, 2023, suggesting a potential challenge in effectively utilizing its working capital to generate sales.
However, there was a significant improvement in the working capital turnover ratio by December 31, 2024, reaching 2.66. This sharp increase indicates that Incyte Corporation managed to enhance its efficiency in converting its working capital into revenue, reflecting a positive turnaround in its working capital management.
In summary, while there were periods of lower efficiency in working capital turnover, particularly in 2022 and 2023, the substantial improvement in 2024 demonstrates the company's ability to effectively leverage its working capital to support its sales activities. This positive trend in working capital turnover can indicate enhanced operational performance and potentially lead to improved financial stability for Incyte Corporation.
Peer comparison
Dec 31, 2024