Incyte Corporation (INCY)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	3,213,380	3,227,230	3,131,120	2,821,050	2,951,420	2,690,620	2,435,380	2,256,760	2,057,440	1,999,020	1,797,580	1,669,970	1,513,010	1,497,780	1,326,730	1,043,240	1,832,680	1,702,020	1,416,220	1,299,700
Short-term investments	US$ in thousands	442,667	289,223	292,243	291,661	287,543	286,500	287,044	287,401	290,752	285,054	283,385	292,425	288,369	237,025	262,756	259,351	284,870	284,195	279,631	281,320
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
Cash ratio		2.95	3.13	3.06	3.09	2.80	2.96	2.94	2.87	2.75	3.08	3.15	3.15	2.85	2.86	2.86	2.59	4.13	4.30	4.62	4.34

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 for Incyte Corp. has been relatively stable over the past eight quarters, ranging from 2.94 to 3.29. This ratio indicates that the company has a sufficient amount of cash and cash equivalents to cover its current liabilities. A higher cash ratio suggests a stronger ability to meet short-term obligations. In general, a cash ratio above 1 is favorable, as it implies that the company can meet its short-term liabilities using its readily available cash resources. Incyte Corp.'s consistent cash ratio above 3 indicates a strong liquidity position and ability to handle any unexpected short-term financial needs.