Incyte Corporation (INCY)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 93.10% | 93.90% | 94.94% | 95.08% | 94.71% |
| Operating profit margin | 16.80% | 17.07% | 19.62% | -9.89% | 18.62% |
| Pretax margin | 22.59% | 15.59% | 19.10% | -8.71% | 22.55% |
| Net profit margin | 16.18% | 10.04% | 31.76% | -11.09% | 20.70% |
Incyte Corp.'s profitability ratios indicate fluctuations in its financial performance over the past five years. The gross profit margin has remained consistently high, ranging from 93.10% to 95.08%, which suggests efficient cost management in production.
The operating profit margin shows a more varied trend, with a peak of 21.35% in 2021 but a significant decline to -7.41% in 2020, indicating potential operational challenges or one-off events impacting profitability.
Similarly, the pretax margin fluctuated, reaching 22.57% in 2023 but falling to -8.71% in 2020, possibly due to irregular expenses or losses. The net profit margin also experienced significant variability, with a high of 31.76% in 2021 but a low of -11.09% in 2020, suggesting volatility in bottom-line profitability.
Overall, while Incyte Corp. has demonstrated strong gross profit margins, its operating and net profit margins reflect greater inconsistency, signaling potential areas for improvement in operational efficiency and profitability sustainability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.15% | 9.92% | 11.87% | -7.40% | 11.73% |
| Return on assets (ROA) | 8.81% | 5.83% | 19.23% | -8.30% | 13.04% |
| Return on total capital | 16.12% | 12.17% | 15.18% | -8.81% | 18.81% |
| Return on equity (ROE) | 11.51% | 7.80% | 25.16% | -11.32% | 17.20% |
Incyte Corp.'s profitability ratios have shown some fluctuations over the past five years.
1. Operating return on assets (Operating ROA) has been relatively stable between 9.61% and 12.92% over the past five years. This ratio indicates that the company is generating a consistent level of operating income relative to its total assets.
2. Return on assets (ROA) has varied significantly, ranging from a negative -8.30% to a high of 19.23%. The negative ROA in 2020 suggests that the company was not efficient in generating profits from its assets that year.
3. Return on total capital has also shown fluctuations, with a range from -7.47% to 16.76%. This ratio reflects how effectively the company is using its total capital to generate profits.
4. Return on equity (ROE) has been volatile, with the company experiencing negative returns in 2020 and 2019. The ratio ranged from -11.32% to 25.16%, indicating varied performance in generating returns for its shareholders.
Overall, Incyte Corp. has shown mixed profitability performance over the past five years, with some years demonstrating solid returns while others indicating challenges in generating profits from its assets and capital. It is important for investors to closely monitor these ratios to assess the company's financial health and performance.