Incyte Corporation (INCY)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 3,239,030 | 4,645,400 | 4,092,850 | 3,118,670 | 2,359,890 |
| Total current liabilities | US$ in thousands | 1,641,850 | 1,240,380 | 1,157,080 | 854,308 | 631,195 |
| Current ratio | 1.97 | 3.75 | 3.54 | 3.65 | 3.74 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $3,239,030K ÷ $1,641,850K
= 1.97
The current ratio for Incyte Corporation has shown a stable and healthy trend over the past five years, starting at 3.74 in December 31, 2020, and gradually decreasing to 3.65 in December 31, 2021, 3.54 in December 31, 2022, and then recovering to 3.75 in December 31, 2023. However, there was a notable drop to 1.97 in December 31, 2024, indicating a potential liquidity concern. While the current ratio above 1.0 generally suggests that the company is capable of meeting its short-term obligations, a ratio below 2.0 may raise some questions about its ability to cover its current liabilities with its current assets in the most recent year. Further analysis of the company's liquidity position and management of working capital may be warranted to understand the factors contributing to this decline in the current ratio in the latest financial year.
Peer comparison
Dec 31, 2024