Incyte Corporation (INCY)

Working capital 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
Revenue (ttm)	US$ in thousands	3,693,101	3,609,260	3,513,520	3,470,962	3,395,993	3,330,147	3,320,472	3,114,784	2,986,267	2,912,923	2,720,579	2,702,913	2,666,702	2,456,582	2,387,520	2,229,409	2,158,759	2,107,772	2,005,874	1,997,458
Total current assets	US$ in thousands	4,645,400	4,402,660	4,264,430	3,971,630	4,092,850	3,821,110	3,625,840	3,288,090	3,118,670	2,923,800	2,620,060	2,449,970	2,359,890	2,159,420	2,077,620	1,716,170	2,481,490	2,319,600	2,058,620	1,904,500
Total current liabilities	US$ in thousands	1,240,380	1,124,680	1,118,770	1,006,110	1,157,080	1,006,600	926,674	886,163	854,308	742,712	660,324	623,881	631,195	606,202	556,513	503,412	513,340	461,683	367,105	364,515
Working capital turnover		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	1.13	1.19	1.30

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,693,101K ÷ ($4,645,400K – $1,240,380K)
= 1.08

Working capital turnover measures how efficiently a company is utilizing its working capital to generate sales revenue. A higher working capital turnover ratio indicates that the company is effectively managing its current assets and liabilities to support its sales activities.

In the case of Incyte Corp., the working capital turnover ratio has been fluctuating in recent quarters. The trend shows a slight decline from Q1 2022 to Q4 2023, where it decreased from 1.30 to 1.09. This decline may suggest a decrease in the efficiency of utilizing working capital to generate sales.

It is important to note that a working capital turnover ratio below 1 may indicate that the company is inefficiently using its working capital to generate revenue. However, Incyte Corp.'s ratios are all above 1, indicating that the company is effectively managing its working capital.

Overall, while the working capital turnover ratio for Incyte Corp. has fluctuated, remaining generally above 1 implies that the company is efficiently using its working capital to support its sales operations. The slight decline in the ratio over the quarters should be monitored closely to ensure that the trend does not signify underlying issues with working capital management.