Alkermes Plc (ALKS)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,556,830 | 1,639,870 | 1,099,460 | 1,162,060 | 1,032,500 |
| Property, plant and equipment | US$ in thousands | 227,564 | 226,943 | 222,919 | 341,054 | 350,003 |
| Fixed asset turnover | 6.84 | 7.23 | 4.93 | 3.41 | 2.95 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,556,830K ÷ $227,564K
= 6.84
The fixed asset turnover ratio for Alkermes Plc has shown a consistent upward trend over the years, indicating an improvement in the company's efficiency in generating revenue from its fixed assets.
In December 31, 2020, the fixed asset turnover was 2.95, representing the company's ability to generate $2.95 in revenue for every dollar invested in fixed assets. By December 31, 2021, this ratio increased to 3.41, showing a positive growth in asset utilization.
The trend continued upward in December 31, 2022, with a fixed asset turnover of 4.93, indicating a significant increase in the efficiency of utilizing fixed assets to generate revenue. By December 31, 2023, the ratio surged to 7.23, reflecting a substantial improvement in asset productivity and revenue generation.
However, there was a slight decline in the fixed asset turnover ratio by December 31, 2024, which stood at 6.84. While this decrease may suggest a potential slowdown in the efficiency of utilizing fixed assets to generate revenue, the overall trend remains upward and positive over the years.
In conclusion, the increasing trend in Alkermes Plc's fixed asset turnover ratio signifies the company's improving efficiency in leveraging its fixed assets to generate revenue, reflecting positively on its operational effectiveness and financial performance.
Peer comparison
Dec 31, 2024