Incyte Corporation (INCY)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	3,213,380	2,951,420	2,057,440	1,513,010	1,832,680
Short-term investments	US$ in thousands	442,667	287,543	290,752	288,369	284,870
Total current liabilities	US$ in thousands	1,240,380	1,157,080	854,308	631,195	513,340
Cash ratio		2.95	2.80	2.75	2.85	4.13

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($3,213,380K + $442,667K) ÷ $1,240,380K
= 2.95

The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. Incyte Corp.'s cash ratio has fluctuated over the past five years, ranging from 2.90 to 4.21. A higher cash ratio indicates a stronger ability to cover short-term obligations with readily available cash.

In 2019, Incyte Corp. had a relatively high cash ratio of 4.21, indicating a robust ability to cover its short-term liabilities with cash on hand. However, in the subsequent years, the cash ratio decreased, reaching its lowest point at 2.90 in 2021 before slightly recovering in 2023 to 3.09.

Overall, Incyte Corp.'s cash ratio has shown some fluctuations over the years, suggesting changes in the company's liquidity position. It is important to monitor this ratio to assess the company's ability to meet its short-term financial obligations with cash reserves.