Incyte Corporation (INCY)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	726,766	639,958	687,653	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
Total assets	US$ in thousands	5,444,320	5,012,430	7,135,600	6,782,110	6,388,240	6,208,260	5,797,620	5,840,980	5,510,210	5,319,040	5,054,220	4,933,350	4,198,830	3,904,620	3,661,440	3,560,920	3,307,430	3,212,320	2,752,420	3,426,750
Operating ROA		13.35%	12.77%	9.64%	9.15%	7.88%	6.88%	8.41%	9.92%	11.25%	13.48%	11.94%	11.87%	15.23%	10.48%	13.63%	-7.40%	-10.07%	-6.35%	-12.21%	11.73%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $726,766K ÷ $5,444,320K
= 13.35%

Incyte Corporation's operating return on assets (operating ROA) has shown fluctuations over the periods analyzed. The company's operating ROA was positive in most quarters, indicating that it generated operating profits relative to its assets.

In December 2019, the operating ROA was 11.73%, reflecting a healthy return on assets. However, by March 2020, the metric sharply declined to -12.21%, indicating a period of negative operating return on assets, which could be a cause for concern.

The trend continued with negative operating ROA values in the subsequent quarters up to December 2020. From March 2021 onwards, there was a significant improvement in operating ROA, reaching 15.23% by September 2021, suggesting increased efficiency in generating profits from the company's assets.

The operating ROA fluctuated in the following periods, showing some variability but generally maintaining positive values above 10%, which is a good sign for the company's profitability and asset utilization.

As of December 2024, Incyte Corporation's operating ROA stood at 13.35%, indicating a solid return on its assets. Overall, the company's operating ROA performance highlights both strengths and areas for improvement in effectively utilizing its assets to generate operating profits.