Incyte Corporation (INCY)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 32,615 | 597,599 | 340,660 | 948,581 | -295,697 |
| Total assets | US$ in thousands | 5,444,320 | 6,782,110 | 5,840,980 | 4,933,350 | 3,560,920 |
| ROA | 0.60% | 8.81% | 5.83% | 19.23% | -8.30% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $32,615K ÷ $5,444,320K
= 0.60%
Based on the provided data, Incyte Corporation's return on assets (ROA) has exhibited significant fluctuations over the past five years.
In 2020, the company experienced a negative ROA of -8.30%, indicating that the assets were not effectively generating profits during that period. However, there was a notable turnaround in 2021, with the ROA surging to 19.23%, reflecting a substantial improvement in the company's ability to generate profits from its assets.
Subsequently, in 2022 and 2023, the ROA moderated to 5.83% and 8.81%, respectively, suggesting a more stabilized performance in utilizing its assets efficiently. However, by the end of 2024, the ROA declined to 0.60%, indicating a decrease in the company's profitability relative to its assets.
Overall, while there have been fluctuations in Incyte Corporation's ROA over the past five years, the company managed to significantly improve its performance in 2021 before experiencing a decline in profitability in 2024. It may be crucial for stakeholders to closely monitor the company's asset management strategies to maintain consistent profitability in the future.
Peer comparison
Dec 31, 2024