Incyte Corporation (INCY)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 955,947 | 888,856 | 1,021,030 | 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 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,447,630 | 3,171,220 | 5,394,270 | 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 |
| Return on total capital | 27.73% | 28.03% | 18.93% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $955,947K ÷ ($—K + $3,447,630K)
= 27.73%
Incyte Corporation's return on total capital has displayed fluctuations over the period from December 31, 2019, to December 31, 2024. The return on total capital started at a healthy 18.81% at the end of 2019 but then showed a significant decline to -16.48% by March 31, 2020. This negative trend continued into June 30, 2020, at -5.14% and September 30, 2020, at -11.38%.
However, the company's return on total capital started to recover in the following periods, reaching 19.91% by March 31, 2021. This positive momentum continued through June 30, 2021, at 13.87% and September 30, 2021, at 19.69%. By the end of December 31, 2021, the return on total capital was recorded at 15.18%.
Although the return on total capital experienced slight fluctuations in the subsequent periods, it remained relatively stable within the range of 11.49% to 18.93%. Notably, there was a significant improvement in the return on total capital by September 30, 2024, reaching 28.03%, and maintaining a strong performance at 27.73% by December 31, 2024.
Overall, Incyte Corporation's return on total capital has shown resilience and the ability to recover from negative trends, demonstrating improved efficiency in utilizing its total capital to generate returns for its stakeholders.
Peer comparison
Dec 31, 2024