Incyte Corporation (INCY)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,687,830 | 3,213,380 | 2,951,420 | 2,057,440 | 1,513,010 |
| Short-term investments | US$ in thousands | 470,263 | 442,667 | 287,543 | 290,752 | 288,369 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 1,641,850 | 1,240,380 | 1,157,080 | 854,308 | 631,195 |
| Quick ratio | 1.31 | 2.95 | 2.80 | 2.75 | 2.85 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,687,830K
+ $470,263K
+ $—K)
÷ $1,641,850K
= 1.31
The quick ratio of Incyte Corporation has been relatively stable over the past five years, ranging from a high of 2.95 as of December 31, 2023, to a low of 1.31 as of December 31, 2024. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets. Incyte Corporation has generally maintained a strong quick ratio above 1, indicating a healthy level of liquidity. However, the significant drop in the quick ratio to 1.31 as of December 31, 2024, raises concerns about the company's ability to cover its short-term liabilities with its liquid assets effectively. Further analysis is recommended to understand the underlying reasons for this decline and to ensure the company's financial health and stability going forward.
Peer comparison
Dec 31, 2024