Incyte Corporation (INCY)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	597,599	424,981	366,487	324,371	340,660	876,050	945,014	933,038	948,581	534,580	337,638	478,480	-295,697	-334,542	-191,068	-376,048	446,906	404,964	305,869	252,945
Total stockholders’ equity	US$ in thousands	5,189,840	4,931,450	4,740,690	4,462,570	4,370,120	4,226,650	4,085,060	3,863,070	3,770,000	3,148,660	2,935,860	2,727,840	2,611,270	2,390,830	2,344,600	1,937,720	2,598,410	2,422,530	2,247,190	2,085,570
ROE		11.51%	8.62%	7.73%	7.27%	7.80%	20.73%	23.13%	24.15%	25.16%	16.98%	11.50%	17.54%	-11.32%	-13.99%	-8.15%	-19.41%	17.20%	16.72%	13.61%	12.13%

December 31, 2023 calculation

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

Incyte Corp.'s return on equity (ROE) has exhibited some fluctuations over the past eight quarters. In Q4 2023, the ROE was 11.51%, which was an improvement from the previous quarter's ROE of 8.62%. However, the ROE in Q4 2023 was still lower than the ROE figures from Q2 and Q3 2022, which were notably higher at 23.13% and 24.15% respectively.

The ROE seems to have experienced a declining trend from the peak in Q2 2022 to the current level in Q4 2023. This downward trend may indicate challenges in generating profits relative to shareholders' equity. It is essential for Incyte Corp. to assess the factors contributing to the fluctuations in ROE and take appropriate actions to enhance profitability and efficiency in the utilization of equity.