Incyte Corporation (INCY)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	1,687,830	3,213,380	2,951,420	2,057,440	1,513,010
Short-term investments	US$ in thousands	470,263	442,667	287,543	290,752	288,369
Total current liabilities	US$ in thousands	1,641,850	1,240,380	1,157,080	854,308	631,195
Cash ratio		1.31	2.95	2.80	2.75	2.85

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,687,830K + $470,263K) ÷ $1,641,850K
= 1.31

The cash ratio of Incyte Corporation has shown a relatively stable trend over the years, ranging from 1.31 to 2.95. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without having to rely on external sources of funding. Incyte Corporation's cash ratio has generally remained above 2, indicating that the company has a healthy level of cash reserves to cover its short-term liabilities. However, there was a slight decrease in the cash ratio from 2.85 in 2020 to 1.31 in 2024, which may warrant further investigation into the company's liquidity management and cash flow position during that period.