Incyte Corporation (INCY)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.97 | 1.87 | 3.47 | 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 |
| Quick 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 |
| 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 |
Incyte Corporation's liquidity ratios indicate the company's ability to meet its short-term obligations. The current ratio has been consistently above 3 in recent years, indicating that the company has more than enough current assets to cover its current liabilities. However, there has been a slight decline in the current ratio from 3.97 at June 30, 2021, to 3.54 at December 31, 2022, with a slight improvement to 3.95 at March 31, 2023.
The quick ratio, which excludes inventory from current assets, also shows a healthy liquidity position for Incyte Corporation. The ratio has generally been above 2, indicating the company's ability to cover its short-term liabilities without relying on inventory. Similarly to the current ratio, there was a decline in the quick ratio from 3.15 at June 30, 2021, to 2.80 at December 31, 2022, followed by an improvement to 3.09 at March 31, 2023.
The cash ratio, which is the strictest measure of liquidity as it only includes cash and cash equivalents, mirrors the trends of the quick ratio. The ratios have been consistently above 2, suggesting that Incyte Corporation holds a sufficient amount of cash to cover its immediate liabilities. However, there was a noticeable dip in the cash ratio from 3.15 at June 30, 2021, to 2.80 at December 31, 2022, before rising to 3.09 at March 31, 2023.
Overall, Incyte Corporation maintains strong liquidity positions based on its current, quick, and cash ratios. The slight fluctuations in these ratios over the years are normal in response to changes in business operations and economic conditions.
Additional liquidity measure
| 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 conversion cycle | days | -165.76 | -142.77 | -141.70 | -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 |
The cash conversion cycle of Incyte Corporation has shown some fluctuations over the periods analyzed. The company has managed to efficiently manage its working capital throughout most of the periods, as indicated by its negative cash conversion cycle. This implies that Incyte is able to convert its inventory into cash quickly and efficiently, potentially resulting in a favorable liquidity position.
However, it's worth noting that there have been instances where the cash conversion cycle has increased, such as at the end of 2022 and the beginning of 2023. During these times, the company may have experienced delays in converting inventory into cash, leading to a less efficient working capital management.
Overall, Incyte Corporation has generally maintained a negative cash conversion cycle, indicating effective management of its working capital and the ability to swiftly convert its inventory into cash. Continuing to monitor and potentially improve this metric can further strengthen the company's financial position.