Incyte Corporation (INCY)

Cash ratio

Dec 31, 2024 Sep 30, 2024 Mar 31, 2024 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
Cash and cash equivalents US$ in thousands 1,687,830 1,304,110 3,346,200 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
Short-term investments US$ in thousands 470,263 470,579 504,484 442,667 289,223 292,243 291,661 287,543 286,500 287,044 287,401 290,752 285,054 283,385 292,425 288,369 237,025 262,756 259,351 284,870
Total current liabilities US$ in thousands 1,641,850 1,501,650 1,396,450 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
Cash ratio 1.31 1.18 2.76 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

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 over the period from December 31, 2019, to December 31, 2024, has fluctuated within a range of 1.18 to 4.13. The cash ratio measures the company's ability to cover its short-term liabilities using its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources.

Incyte's cash ratio peaked at 4.13 on December 31, 2019, indicating a strong liquidity position at that time. However, the ratio gradually decreased in the subsequent periods, reaching a low of 1.18 on September 30, 2024. This significant decrease may raise concerns about the company's short-term liquidity and ability to cover its obligations using its available cash.

It is important for investors and analysts to closely monitor changes in the cash ratio over time as it reflects the company's liquidity position and financial health. A declining trend in the cash ratio may indicate potential challenges in managing short-term obligations, while an increasing trend suggests improved liquidity. Further analysis of Incyte Corporation's cash flow statements and overall financial performance is recommended to gain a more comprehensive understanding of its liquidity management.