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.