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Incyte (NAS:INCY) Financial Strength

: 9 (As of Sep. 2022)
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Incyte has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Incyte Corp shows strong financial strength.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Incyte's Interest Coverage for the quarter that ended in Sep. 2022 was 181.63. Incyte's debt to revenue ratio for the quarter that ended in Sep. 2022 was 0.01. As of today, Incyte's Altman Z-Score is 10.19.


Incyte (NAS:INCY) Financial Strength Competitive Comparison

For the Biotechnology subindustry, Incyte's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Incyte (NAS:INCY) Financial Strength Distribution

For the Biotechnology industry and Healthcare sector, Incyte's Financial Strength distribution charts can be found below:

* The bar in red indicates where Incyte's Financial Strength falls into.



Incyte Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Incyte's Interest Expense for the months ended in Sep. 2022 was $-1 Mil. Its Operating Income for the months ended in Sep. 2022 was $116 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2022 was $30 Mil.

Incyte's Interest Coverage for the quarter that ended in Sep. 2022 is

Interest Coverage=-1*Operating Income (Q: Sep. 2022 )/Interest Expense (Q: Sep. 2022 )
=-1*116.427/-0.641
=181.63

The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Incyte Corp has enough cash to cover all of its debt. Its financial situation is stable.

2. Debt to revenue ratio. The lower, the better.

Incyte's Debt to Revenue Ratio for the quarter that ended in Sep. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(11.604 + 30.476) / 3293.212
=0.01

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Incyte has a Z-score of 10.19, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 10.19 is strong.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Incyte  (NAS:INCY) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Incyte has the Financial Strength Rank of 9. It shows strong financial strength and is unlikely to fall into distressed situations.


Incyte Financial Strength Related Terms

Thank you for viewing the detailed overview of Incyte's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Incyte (NAS:INCY) Business Description

Incyte logo
Address
1801 Augustine Cut-Off, Wilmington, DE, USA, 19803
Incyte focuses on the discovery and development of small-molecule drugs. The firm's lead drug, Jakafi, treats two types of rare blood cancer and graft versus host disease and is partnered with Novartis. Incyte's other marketed drugs include rheumatoid arthritis treatment Olumiant (licensed to Lilly), and oncology drugs Iclusig (chronic myeloid leukemia), Pemazyre (cholangiocarcinoma), Tabrecta (lung cancer), and Monjuvi (diffuse large B-cell lymphoma). The firm's first dermatology product, Opzelura, was approved in 2021 for atopic dermatitis. Incyte's pipeline includes a broad array of oncology and dermatology programs.
Executives
Tray Thomas officer: Principal Accounting Officer C/O INCYTE CORPORATION 1801 AUGUSTINE CUT-OFF WILMINGTON DE 19803
Brawley Otis W director 5203 BRISTOL INDUSTRIAL WAY BUFORD GA 30518
High Katherine A director 3737 MARKET STREET SUITE 1300 PHILADELPHIA PA 19104
Harrigan Edmund director
Morrissey Michael James officer: EVP, Head of Tech. Operations IN CARE OF INCYTE CORPORATION 1801 AUGUSTINE CUT OFF WILMINGTON DE 19803
Dickinson Jonathan Elliott officer: EVP, General Manager, Europe CARE OF INCYTE CORPORATION 1801 AUGUSTINE CUT OFF WILMINGTON DE 19803
Stamoulis Christiana officer: EVP & Chief Financial Officer C/O VERTEX PHARMACEUTICALS INCORPORATED 130 WAVERLY ST CAMBRIDGE MA 02139
Dhanak Dashyant officer: EVP & Chief Scientific Officer C/O INCYTE CORPORATION 1801 AUGUSTINE CUT-OFF WILMINGTON DE 19803
Pasquale Maria E officer: EVP & General Counsel C/O INCYTE CORPORATION 1801 AUGUSTINE CUT-OFF WILMINGTON DE 19803
Fouse Jacqualyn A director C/O DICK'S SPORTING GOODS 345 COURT STREET CORAOPOLIS PA 15108
Iyengar Vijay K officer: EVP GPS, BD, & Licensing 1801 AUGUSTINE CUT-OFF WILMINGTON DE 19803
Stein Steven H officer: EVP & Chief Medical Officer 1801 AUGUSTINE CUT-OFF WILMINGTON DE 19803
Trower Paul officer: VP, Finance & Prin Acc Officer 1801 AUGUSTINE CUT-OFF WILMINGTON DE 19803
Clancy Paul J director C/O BIOGEN IDEC INC. 14 CAMBRIDGE CENTER CAMBRIDGE MA 02142
Bienaime Jean Jacques director 925 PAGE MILL ROAD PALO ALTO CA 94304

Incyte (NAS:INCY) Headlines

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