Incyte Corporation (INCY)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	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	3,214,820	2,947,630	2,754,160
Operating ROA		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%	12.10%	9.70%	9.82%

December 31, 2023 calculation

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

To analyze Incyte Corp.'s operating return on assets (operating ROA) based on the data provided in the table, we can observe the following trends:

1. The operating ROA has exhibited a decreasing trend over the past few quarters, starting at 14.20% in Q2 2022 and declining to 9.61% in Q4 2023.

2. Despite fluctuations, the operating ROA has generally remained above 7% throughout the periods under review, indicating that the company has been effectively generating operating income relative to its total assets.

3. The highest operating ROA was recorded in Q2 2022 at 14.20%, suggesting that the company was most efficient in utilizing its assets to generate operating income during that period.

4. The significant decline from Q2 2022 to Q4 2023 may raise concerns about the company's operational efficiency and asset utilization in the more recent quarters.

In summary, Incyte Corp.'s operating ROA has shown a downward trend in recent quarters, although it has generally remained at respectable levels above 7%. Further analysis of the company's operational performance and asset management practices may be warranted to understand the factors influencing this trend.