Incyte Corporation (INCY)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 4,645,400 | 4,092,850 | 3,118,670 | 2,359,890 | 2,481,490 |
| Total current liabilities | US$ in thousands | 1,240,380 | 1,157,080 | 854,308 | 631,195 | 513,340 |
| Current ratio | 3.75 | 3.54 | 3.65 | 3.74 | 4.83 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $4,645,400K ÷ $1,240,380K
= 3.75
The current ratio, which measures Incyte Corp.'s ability to meet its short-term obligations with its current assets, has exhibited fluctuations over the past five years. As of December 31, 2023, the current ratio stands at 3.75, showing a slight improvement compared to the previous year but lower than the ratio in 2019.
In 2023, for every dollar of current liabilities, Incyte Corp. has $3.75 in current assets available to cover those obligations. This indicates that the company has a strong liquidity position and is capable of meeting its short-term financial commitments.
In general, a current ratio above 2 is considered healthy and suggests that the company is financially sound in the short term. Although the current ratio has shown some variability in recent years, Incyte Corp.'s current assets appear to comfortably exceed its current liabilities, providing a buffer for unexpected expenses or downturns in the business environment.
Peer comparison
Dec 31, 2023