Incyte Corporation (INCY)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	836,766	646,288	561,095	512,892	531,782	571,272	631,951	573,886	572,352	620,110	407,243	543,116	-230,039	-271,958	-120,431	-319,261	488,645	433,106	315,919	261,277
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	18,080	17,862	17,647
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
Return on total capital		16.12%	13.11%	11.84%	11.49%	12.17%	13.52%	15.47%	14.86%	15.18%	19.69%	13.87%	19.91%	-8.81%	-11.38%	-5.14%	-16.48%	18.81%	17.75%	13.95%	12.42%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $836,766K ÷ ($—K + $5,189,840K)
= 16.12%

Incyte Corp.'s return on total capital has shown some fluctuation over the past eight quarters. The return on total capital was highest in Q2 2022 at 18.34% and lowest in Q2 2023 at 9.28%. The return on total capital has generally been on a downward trend since Q2 2022, with occasional upticks in performance.

Overall, Incyte Corp.'s return on total capital demonstrates variability in the company's ability to generate earnings from its total invested capital. It is important for stakeholders to closely monitor this ratio to assess the company's efficiency in utilizing its capital resources effectively.