Incyte Corporation (INCY)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 92.64% | 93.10% | 93.90% | 94.94% | 95.08% |
| Operating profit margin | 1.45% | 16.80% | 17.07% | 19.62% | -9.89% |
| Pretax margin | 7.47% | 22.59% | 15.59% | 19.10% | -8.71% |
| Net profit margin | 0.77% | 16.18% | 10.04% | 31.76% | -11.09% |
Incyte Corporation's profitability ratios demonstrate a mixed performance over the period from December 31, 2020, to December 31, 2024.
- Gross Profit Margin remained relatively high throughout the period, starting at 95.08% in 2020 and gradually decreasing to 92.64% by the end of 2024. This indicates that Incyte Corporation effectively controls its production costs and maintains a high level of profitability from its core operations.
- Operating Profit Margin displayed volatility, with a significant improvement from -9.89% in 2020 to 19.62% in 2021, followed by a downward trend to 1.45% in 2024. This suggests fluctuations in operating efficiency and profitability, possibly influenced by changes in expenses or revenues.
- Pretax Margin experienced fluctuations as well, starting at -8.71% in 2020, reaching a high of 22.59% in 2023, and declining to 7.47% by the end of 2024. These variations indicate changes in pre-tax profitability, which could be impacted by factors such as taxes, interest expenses, or extraordinary items.
- Net Profit Margin saw considerable volatility, starting at a negative level of -11.09% in 2020, peaking at 31.76% in 2021, and dropping to 0.77% in 2024. This implies fluctuations in net profitability after considering all expenses, taxes, and other adjustments, reflecting potential challenges in sustaining bottom-line growth.
Overall, while Incyte Corporation maintained a strong gross profit margin, its operating, pre-tax, and net profit margins exhibited fluctuations over the analyzed period, indicating the company's varying ability to generate profits from its operations and manage its expenses effectively.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.13% | 9.15% | 9.92% | 11.87% | -7.40% |
| Return on assets (ROA) | 0.60% | 8.81% | 5.83% | 19.23% | -8.30% |
| Return on total capital | 1.78% | 16.12% | 12.17% | 15.18% | -8.81% |
| Return on equity (ROE) | 0.95% | 11.51% | 7.80% | 25.16% | -11.32% |
Based on the provided data for Incyte Corporation, the company's profitability ratios have shown fluctuating trends over the past five years.
1. Operating Return on Assets (Operating ROA): The Operating ROA has varied significantly, with a negative value of -7.40% in 2020, followed by a substantial increase to 11.87% in 2021. In the subsequent years, it stabilized around 9-10%, with values of 9.92% in 2022, 9.15% in 2023, and a slight decline to 1.13% in 2024.
2. Return on Assets (ROA): The ROA also experienced fluctuations, starting at -8.30% in 2020 before surging to 19.23% in 2021. However, it then decreased to 5.83% in 2022, followed by a slight increase to 8.81% in 2023 and a drop to 0.60% in 2024.
3. Return on Total Capital: The Return on Total Capital showed a similar pattern, with a negative value of -8.81% in 2020, a rise to 15.18% in 2021, and subsequent fluctuations at around 12-16% in the following years, reaching 1.78% in 2024.
4. Return on Equity (ROE): The ROE exhibited a negative figure of -11.32% in 2020, which then escalated to 25.16% in 2021. However, it declined to 7.80% in 2022 and further to 0.95% in 2024, with a modest increase to 11.51% in 2023.
The analysis indicates that Incyte Corporation has experienced both improvements and setbacks in its profitability over the years. It is essential for stakeholders to closely monitor these ratios to assess the company's performance and financial health accurately.