Incyte Corporation (INCY)

Quick ratio

		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	US$ in thousands	3,213,380	3,227,230	3,131,120	2,821,050	2,951,420	2,690,620	2,435,380	2,256,760	2,057,440	1,999,020	1,797,580	1,669,970	1,513,010	1,497,780	1,326,730	1,043,240	1,832,680	1,702,020	1,416,220	1,299,700
Short-term investments	US$ in thousands	442,667	289,223	292,243	291,661	287,543	286,500	287,044	287,401	290,752	285,054	283,385	292,425	288,369	237,025	262,756	259,351	284,870	284,195	279,631	281,320
Receivables	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	1,240,380	1,124,680	1,118,770	1,006,110	1,157,080	1,006,600	926,674	886,163	854,308	742,712	660,324	623,881	631,195	606,202	556,513	503,412	513,340	461,683	367,105	364,515
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

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($3,213,380K + $442,667K + $—K) ÷ $1,240,380K
= 2.95

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A higher quick ratio indicates a stronger liquidity position.

Based on the data provided for Incyte Corp., the quick ratio has been relatively stable over the past eight quarters, ranging from 3.50 to 3.91. This shows that the company has consistently maintained a strong ability to cover its short-term liabilities with its quick assets.

The consistently high quick ratios indicate that Incyte Corp. has a sufficient level of liquid assets, such as cash and accounts receivable, to meet its short-term obligations as they come due. This suggests that the company is well-positioned to handle its current liabilities without relying heavily on selling inventory or other less liquid assets.

Overall, the trend in Incyte Corp.'s quick ratio reflects a sound liquidity position, providing investors and stakeholders with confidence in the company's ability to meet its short-term financial obligations.