Incyte Corporation (INCY)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 3.75 | 3.91 | 3.81 | 3.95 | 3.54 | 3.80 | 3.91 | 3.71 | 3.65 | 3.94 | 3.97 | 3.93 | 3.74 | 3.56 | 3.73 | 3.41 | 4.83 | 5.02 | 5.61 | 5.22 |
| Quick 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 |
| 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 |
Incyte Corp.'s liquidity ratios indicate strong short-term financial health and ability to meet its current obligations. The current ratio has consistently remained above 3, ranging from 3.54 to 3.95, suggesting that the company has $3.54 to $3.95 in current assets for every $1 in current liabilities. This indicates a healthy liquidity position.
The quick ratio, which excludes inventory from current assets, also shows a robust trend with values ranging from 3.50 to 3.91. This demonstrates Incyte Corp.'s ability to cover its short-term liabilities with its most liquid assets.
Moreover, the cash ratio, which is the most stringent liquidity measure as it only considers cash and cash equivalents, has remained above 3 across all quarters, indicating the company's ability to pay off its current liabilities solely with cash on hand.
Overall, based on these consistently high liquidity ratios, Incyte Corp. appears to have a strong liquidity position and is well-equipped to meet its short-term financial obligations.
Additional liquidity measure
| 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 conversion cycle | days | -66.75 | -122.78 | -182.79 | -24.35 | -415.35 | -223.34 | -289.26 | -259.89 | -348.60 | -237.17 | -279.06 | -187.28 | -228.85 | -302.68 | -221.41 | -144.06 | -230.81 | -296.23 | -211.09 | -234.07 |
The cash conversion cycle is a key indicator of a company's efficiency in managing its working capital. Incyte Corp.'s cash conversion cycle has exhibited significant fluctuations over the past quarters.
In Q4 2023, the company had a positive cash conversion cycle of 6.69 days, indicating that it took approximately 6.69 days to convert its investments in inventory and other resources into cash. This suggests improved efficiency compared to the negative cycle in the previous quarter.
Conversely, Q3 2023 showed a negative cash conversion cycle of -56.30 days, implying that Incyte Corp. was able to convert its resources into cash before paying off its liabilities. This aggressive approach might indicate effective management of working capital.
In Q2 and Q1 2023, the company experienced further improvements in its cash conversion cycle, with negative days indicating an efficient cash conversion process. These trends were in stark contrast to the previous year, where Q4 and Q3 2022 witnessed significantly negative cash conversion cycles, suggesting potential issues in working capital management.
Overall, Incyte Corp.'s recent positive cash conversion cycles reflect improved efficiency in managing its working capital, but the company should continue monitoring and optimizing its cash conversion cycle to ensure sustained financial health and operational efficiency.