Incyte Corporation (INCY)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	3,438,110	3,187,640	2,835,280	2,535,370	2,044,510
Revenue	US$ in thousands	3,693,100	3,394,640	2,986,270	2,666,700	2,158,760
Gross profit margin		93.10%	93.90%	94.94%	95.08%	94.71%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $3,438,110K ÷ $3,693,100K
= 93.10%

The gross profit margin of Incyte Corp. has shown a decreasing trend over the past five years, declining from 94.71% in 2019 to 93.10% in 2023. Despite the slight fluctuation in the intervening years, the overall trend suggests a gradual erosion of gross profit margin. This may indicate increasing costs of goods sold relative to revenue generated, potentially squeezing the company's profitability. It is important for Incyte Corp. to closely monitor and address the factors contributing to this trend to maintain strong financial health and sustainable profitability in the future.