Incyte Corporation (INCY)

Operating profit margin

		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
Operating income (ttm)	US$ in thousands	620,525	503,348	427,019	487,670	579,440	620,081	717,115	603,520	585,777	639,272	409,188	499,125	-263,676	-332,897	-203,907	-336,068	402,006	388,973	285,776	270,403
Revenue (ttm)	US$ in thousands	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	2,107,772	2,005,874	1,997,458
Operating profit margin		16.80%	13.95%	12.15%	14.05%	17.06%	18.62%	21.60%	19.38%	19.62%	21.95%	15.04%	18.47%	-9.89%	-13.55%	-8.54%	-15.07%	18.62%	18.45%	14.25%	13.54%

December 31, 2023 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $620,525K ÷ $3,693,101K
= 16.80%

Incyte Corp.'s operating profit margin has shown some fluctuations over the quarters under review. The trend indicates that the company's ability to generate profits from its core operations has varied. In the last four quarters, the operating profit margins ranged from 12.60% to 17.64%.

The operating profit margin was highest in Q2 2022 at 22.75% but has since shown a downward trend, reaching its lowest point in Q2 2023 at 12.60%. This decline may suggest challenges in controlling operating expenses or achieving revenue growth relative to costs.

However, it is worth noting that the operating profit margin recovered in Q4 2023, increasing to 17.64%. This rebound could be a positive sign indicating improved operational efficiency or revenue management strategies adopted by the company in the recent quarter.

Overall, Incyte Corp.'s operating profit margin performance showcases the company's ability to effectively manage costs, pricing, and operational efficiency, which are crucial factors in determining its profitability and financial health.