Incyte Corporation (INCY)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	6,782,110	5,840,980	4,933,350	3,560,920	3,426,750
Total stockholders’ equity	US$ in thousands	5,189,840	4,370,120	3,770,000	2,611,270	2,598,410
Financial leverage ratio		1.31	1.34	1.31	1.36	1.32

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,782,110K ÷ $5,189,840K
= 1.31

Incyte Corp.'s financial leverage ratio has fluctuated over the past five years, ranging from 1.31 to 1.36. The ratio indicates that the company relies more on debt financing than equity financing to support its operations and growth. A financial leverage ratio above 1 suggests that the company has more debt relative to equity in its capital structure.

The decrease in the financial leverage ratio from 1.36 in 2020 to 1.31 in 2023 may indicate that Incyte Corp. has reduced its reliance on debt financing over the years or has increased its equity base. This could be a positive sign as lower leverage ratios typically indicate lower financial risk and greater financial stability.

However, it is essential to assess the trend over a longer period and consider other financial metrics to gain a more comprehensive understanding of Incyte Corp.'s overall financial health and leverage position. Further analysis, including examining interest coverage ratios and debt maturity schedules, would provide additional insights into the company's ability to meet its financial obligations and manage its debt levels effectively.