Incyte Corporation (INCY)

Gross profit margin

Dec 31, 2024 Sep 30, 2024 Mar 31, 2024 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
Gross profit (ttm) US$ in thousands 3,904,379 3,672,480 3,506,229 3,438,108 3,364,858 3,274,625 3,249,757 3,188,996 3,138,439 3,143,479 2,950,399 2,835,276 2,769,483 2,582,686 2,569,684 2,535,374 2,329,362 2,264,582 2,110,429 2,044,510
Revenue (ttm) US$ in thousands 4,209,569 3,949,271 3,765,356 3,693,101 3,609,260 3,513,520 3,470,962 3,395,993 3,330,147 3,320,472 3,114,784 2,986,267 2,912,923 2,720,579 2,702,913 2,666,702 2,456,582 2,387,520 2,229,409 2,158,759
Gross profit margin 92.75% 92.99% 93.12% 93.10% 93.23% 93.20% 93.63% 93.90% 94.24% 94.67% 94.72% 94.94% 95.08% 94.93% 95.07% 95.08% 94.82% 94.85% 94.66% 94.71%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $3,904,379K ÷ $4,209,569K
= 92.75%

Incyte Corporation's gross profit margin has shown a slight downward trend over the reporting periods, starting at 94.71% on December 31, 2019, and reaching 92.75% on December 31, 2024. The company's gross profit margin remained consistently high above 94% for most of the periods, reflecting strong profitability in generating revenue after accounting for the cost of goods sold.

However, the gradual decrease in the gross profit margin over time may indicate increasing costs of production, pricing pressures, or changes in product mix. This trend should be carefully monitored as it may impact the company's overall profitability and financial performance in the future.

It is important for Incyte Corporation to assess the factors influencing its gross profit margin and implement strategies to optimize its cost structure and pricing mechanisms to maintain a healthy level of profitability. Regular financial analysis and performance evaluation will be essential to address any potential challenges and ensure sustainable growth in the competitive pharmaceutical industry.