Incyte Corporation (INCY)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	620,525	579,440	585,777	-263,676	402,006
Total assets	US$ in thousands	6,782,110	5,840,980	4,933,350	3,560,920	3,426,750
Operating ROA		9.15%	9.92%	11.87%	-7.40%	11.73%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $620,525K ÷ $6,782,110K
= 9.15%

The operating return on assets (operating ROA) of Incyte Corp. has fluctuated over the past five years. In 2023, the operating ROA was 9.61%, which decreased from 10.26% in 2022. The decline indicates that the company may not have been as efficient in generating operating income from its assets in 2023 compared to the previous year.

In 2021, Incyte Corp. achieved a relatively high operating ROA of 12.92%, showcasing effective asset utilization to generate operating profits. However, this performance was not consistent as evident from the negative operating ROA of -5.55% in 2020. A negative operating ROA implies that the company experienced operating losses relative to its asset base in that year.

The trend improved significantly in 2019 when Incyte Corp. achieved a strong operating ROA of 12.31%, reflecting efficient operations and higher profitability relative to its assets.

Overall, Incyte Corp. has experienced fluctuations in its operating ROA over the years, indicating varying levels of operational efficiency and profitability in utilizing its assets to generate operating income. The company should continue to monitor and improve its operational performance to enhance its profitability and long-term sustainability.