Alkermes Plc (ALKS)

Fixed asset turnover

		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	Dec 31, 2019
Revenue (ttm)	US$ in thousands	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	1,156,446
Property, plant and equipment	US$ in thousands	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	362,168
Fixed asset turnover		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	3.19

September 30, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,492,589K ÷ $225,422K
= 6.62

Fixed asset turnover measures how efficiently a company is generating revenue from its investment in fixed assets. Alkermes Plc's fixed asset turnover has shown fluctuations over the past few quarters. The upward trend from 2.99 in March 2021 to 7.58 in March 2024 indicates that the company has been more effective in utilizing its fixed assets to generate revenue.

However, it is important to note the variability in the ratios, which could indicate changing business conditions or investment strategies. The ratios range from 2.95 to 7.58, with some quarters showing more stability compared to others. Overall, a higher fixed asset turnover ratio signifies better asset utilization, which can lead to improved profitability. It would be essential to further analyze the underlying reasons for these fluctuations to assess the long-term sustainability of the company's performance.