Incyte Corporation (INCY)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	597,599	340,660	948,581	-295,697	446,906
Total stockholders’ equity	US$ in thousands	5,189,840	4,370,120	3,770,000	2,611,270	2,598,410
ROE		11.51%	7.80%	25.16%	-11.32%	17.20%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $597,599K ÷ $5,189,840K
= 11.51%

Return on equity (ROE) is a key financial ratio that measures a company's profitability by evaluating how efficiently it generates profit from its equity capital. Incyte Corp.'s ROE has fluctuated over the past five years, ranging from -11.32% in 2020 to a high of 25.16% in 2021.

In 2023, Incyte Corp.'s ROE stood at 11.51%, showing an improvement from the previous year's 7.80%. This indicates that the company generated a profit of $11.51 for every dollar of equity capital in 2023, compared to $7.80 in 2022. Despite the increase, the ROE remains lower than the peak in 2021.

The significant variation in Incyte Corp.'s ROE over the years suggests fluctuations in the company's profitability and efficiency in leveraging its equity base to generate returns for its shareholders. The negative ROE in 2020 indicates that the company experienced a loss relative to its equity capital that year.

Overall, a close monitoring of Incyte Corp.'s ROE trend is crucial for assessing the company's ability to generate profits from shareholders' investments and for identifying any underlying factors impacting its financial performance.