Incyte Corporation (INCY)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	3,447,630	5,189,840	4,370,120	3,770,000	2,611,270
ROE		0.95%	11.51%	7.80%	25.16%	-11.32%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $32,615K ÷ $3,447,630K
= 0.95%

Incyte Corporation's return on equity (ROE) has exhibited varying trends over the past five years, as per the provided data.

In 2020, the ROE was negative at -11.32%, indicating that the company's net income was insufficient to generate a positive return for shareholders. This could be a concerning sign regarding the company's profitability and efficiency in utilizing shareholder equity.

However, there was a significant improvement in 2021, with the ROE jumping to 25.16%. This sharp increase suggests that Incyte Corporation was able to enhance its profitability and effectively utilize shareholder equity to generate higher returns.

In 2022, the ROE decreased to 7.80%, indicating a decline in the company's ability to generate profits relative to its equity base compared to the previous year. This may raise concerns about the company's operational efficiency and profitability levels during that period.

The ROE saw another increase in 2023 to 11.51%, signifying a modest improvement in profitability and shareholder value creation. Although positive, the ROE in this year remained below the level achieved in 2021, indicating potential room for further enhancement in efficiency and profitability.

Finally, in 2024, the ROE dropped to 0.95%, which suggests a significant decrease in the company's ability to generate returns for shareholders compared to the previous year. This decrease may raise questions about the company's financial performance and its ability to effectively leverage its assets and equity for profitability.

Overall, the analysis of Incyte Corporation's ROE reveals fluctuations in profitability and efficiency over the five-year period, highlighting the importance of continuous monitoring and evaluation of the company's financial performance to ensure sustainable and profitable operations.