Incyte Corporation (INCY)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.31 | 1.34 | 1.31 | 1.36 | 1.32 |
Incyte Corp.'s solvency ratios indicate strong financial health and a conservative capital structure. The debt-to-assets ratio has been consistently low at 0.00 in 2023, indicating that the company relies minimally on debt to finance its assets. The debt-to-capital and debt-to-equity ratios also show a stable and low level of debt relative to capital and equity, with values of 0.01 across the years. This suggests that the company has a lower level of financial risk associated with its debt obligations.
Additionally, the financial leverage ratio has been relatively stable around 1.31 to 1.36 over the years, indicating that the company's assets are financed primarily through equity rather than debt. This signifies a lower level of leverage and dependency on debt financing.
Overall, based on these solvency ratios, it can be concluded that Incyte Corp. maintains a strong financial position with a conservative approach to financing, which may be viewed positively by investors and creditors as it indicates lower financial risk and greater stability.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 328.01 | 199.47 | 299.97 | -105.82 | 263.42 |
Interest coverage is a financial ratio used to evaluate a company's ability to cover its interest payments with its operating income. A higher interest coverage ratio indicates that a company is more capable of meeting its interest payment obligations.
Analyzing Incyte Corp.'s interest coverage over the past five years, we observe the following trends:
- In 2023, the interest coverage ratio improved significantly to 255.50, indicating a strong ability to cover interest payments with operating income.
- In 2022, the interest coverage ratio remained high at 224.89, highlighting a continued capacity to service interest expenses.
- 2021 saw a substantial increase in the interest coverage ratio to 334.14, indicating a robust ability to meet interest obligations with operating income.
- In 2020, the interest coverage ratio was negative at -90.84, which suggests that the company's operating income was insufficient to cover its interest payments during that period. This could be a cause for concern and requires further investigation.
- The interest coverage ratio in 2019 stood at 227.33, indicating a strong capacity to meet interest payments with operating income.
Overall, Incyte Corp. has generally shown a strong ability to cover its interest payments with operating income, except for the negative interest coverage ratio in 2020. This anomaly in 2020 may necessitate a deeper examination of the company's financial health and performance during that year.