Name: Return on Equity (ROE)

Definition: ROE shows how much profit the company earns for its shareholders based on their invested equity. It’s one of the most watched profitability ratios. A consistently high ROE signals strong management and efficient use of shareholder capital. But artificially high ROE may sometimes be boosted by excessive debt.

Interpretation:
• In '2021', INCY's return on equity was 25.2%, measuring profitability for shareholders. Industry average for Biotechnology: Commercial Physical & Biological Resarch in '2021' stood at 14.2%.
• In '2022', INCY's return on equity was 8.4%, measuring profitability for shareholders. The decline from '2021' may indicate some operational or financial challenges. Industry average for Biotechnology: Commercial Physical & Biological Resarch in '2022' stood at 59.5%. Industry average increased by 45.3% compared to previous year.
• In '2023', INCY's return on equity was 12.5%, measuring profitability for shareholders. The increase since '2022' reflects strengthening financial performance. Industry average for Biotechnology: Commercial Physical & Biological Resarch in '2023' stood at 6.5%. Industry average declined by 52.9% from previous year.
• In '2024', INCY's return on equity was 0.8%, measuring profitability for shareholders. The decline from '2023' may indicate some operational or financial challenges. Industry average for Biotechnology: Commercial Physical & Biological Resarch in '2024' stood at -34.6%. Industry average declined by 41.1% from previous year.
Overall, INCY's return on equity has been volatile but showed a downward trend over the past 4 years.

Formula: ROE = Net Income / Shareholders' Equity

Good Range: 10%-20% desirable for many industries.