Alkermes Plc (ALKS)

Fixed asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Revenue (ttm)	US$ in thousands	1,550,854	1,492,589	1,489,378	1,701,960	1,639,873	1,569,557	1,443,430	1,105,567	1,099,455	1,120,608	1,163,507	1,190,967	1,162,061	1,120,829	1,092,326	1,036,423	1,032,497	1,160,605	1,149,262	1,180,207
Property, plant and equipment	US$ in thousands	227,564	225,422	222,738	224,590	226,943	327,517	323,801	321,109	222,919	326,350	337,146	336,740	341,054	340,594	343,949	346,327	350,003	355,215	361,807	362,539
Fixed asset turnover		6.82	6.62	6.69	7.58	7.23	4.79	4.46	3.44	4.93	3.43	3.45	3.54	3.41	3.29	3.18	2.99	2.95	3.27	3.18	3.26

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,550,854K ÷ $227,564K
= 6.82

The fixed asset turnover ratio for Alkermes Plc has shown fluctuating trends over the past few years. The ratio ranged between 2.95 and 4.93 from December 31, 2020, to December 31, 2022, indicating some variability in how efficiently the company is utilizing its fixed assets to generate revenue during this period.

However, starting from March 31, 2023, the fixed asset turnover ratio increased significantly to 7.23, continuing to rise to 7.58 by the end of March 31, 2024. This upward trend suggests that Alkermes Plc has been able to enhance its efficiency in generating sales revenue relative to its investment in fixed assets during this period.

Further analysis is recommended to understand the factors driving this improvement in fixed asset turnover, as it could indicate improved operational efficiency, better asset management, or changes in the company's business model that have positively impacted revenue generation from fixed assets.