Incyte Corporation (INCY)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 5,189,840 | 4,370,120 | 3,770,000 | 2,611,270 | 2,598,410 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $5,189,840K)
= 0.00
I will analyze Incyte Corp.'s debt-to-capital ratio over the past five years. The debt-to-capital ratio measures the proportion of a company's capital that is financed through debt rather than equity. A lower ratio indicates less financial risk, as it suggests the company relies more on equity financing rather than debt.
In the case of Incyte Corp., the debt-to-capital ratio has been consistently low over the past five years, ranging from 0.01 to 0.02. This indicates that the company has a conservative capital structure, with only a small portion of its capital being funded through debt.
The stable and low debt-to-capital ratio of Incyte Corp. suggests that the company has a strong financial position and is not overly burdened by debt obligations. This can be viewed positively by investors and creditors as it reflects a lower risk of financial distress and indicates the company's ability to meet its financial obligations.
Overall, based on the trend of the debt-to-capital ratio, it appears that Incyte Corp. has maintained a prudent approach to managing its capital structure by keeping its reliance on debt at a minimal level.
Peer comparison
Dec 31, 2023