Incyte Corporation (INCY)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	61,366	620,525	579,440	585,777	-263,676
Total assets	US$ in thousands	5,444,320	6,782,110	5,840,980	4,933,350	3,560,920
Operating ROA		1.13%	9.15%	9.92%	11.87%	-7.40%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $61,366K ÷ $5,444,320K
= 1.13%

Operating return on assets (Operating ROA) is a key financial ratio that indicates the efficiency of a company in generating operating profits from its total assets. Analyzing the trend in Incyte Corporation's Operating ROA from December 31, 2020, to December 31, 2024, provides insights into the company's operational performance.

- As of December 31, 2020, Incyte Corporation reported a negative Operating ROA of -7.40%, indicating that the company was not efficiently generating operating profits relative to its total assets.
- By December 31, 2021, Incyte Corporation significantly improved its Operating ROA to 11.87%, reflecting a positive trend in generating operating profits in relation to its assets.
- Although there was a slight decrease in Operating ROA to 9.92% by December 31, 2022, Incyte Corporation maintained a relatively strong operational performance.
- The trend continued with a marginal decrease in Operating ROA to 9.15% by December 31, 2023, indicating that the company was still effectively utilizing its assets to generate operating profits.
- However, there was a considerable decline in Operating ROA to 1.13% by December 31, 2024, signaling a decrease in operational efficiency and a potential concern for the company's ability to generate operating profits from its assets.

Overall, the fluctuation in Incyte Corporation's Operating ROA over the analyzed period highlights the importance of continuously monitoring the company's operational performance and efficiency in utilizing its assets to enhance profitability.