Incyte Corporation (INCY)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 61,366 | 836,766 | 531,782 | 572,352 | -230,044 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,447,630 | 5,189,840 | 4,370,120 | 3,770,000 | 2,611,270 |
| Return on total capital | 1.78% | 16.12% | 12.17% | 15.18% | -8.81% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $61,366K ÷ ($—K + $3,447,630K)
= 1.78%
Incyte Corporation's return on total capital has exhibited fluctuations over the five-year period from 2020 to 2024. The ratio stood at -8.81% as of December 31, 2020, reflecting a negative return on the capital employed by the company. However, there was a significant improvement in 2021, with the return on total capital increasing to 15.18%, indicating a positive performance in generating returns relative to the total capital invested.
Subsequently, in 2022 and 2023, the return on total capital remained relatively stable at 12.17% and 16.12%, respectively, demonstrating consistent efficiency in utilizing the total capital to generate returns for shareholders. However, there was a notable decline in the ratio in 2024, with the return on total capital dropping to 1.78%.
Overall, Incyte Corporation's return on total capital has shown a mixed performance, with periods of both positive and negative returns. It is essential for the company to assess the factors contributing to these fluctuations and implement strategies to maintain a sustainable and competitive return on total capital in the future.
Peer comparison
Dec 31, 2024