Alkermes Plc (ALKS)

Fixed asset turnover

		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	Sep 30, 2019
Revenue (ttm)	US$ in thousands	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	1,057,796
Property, plant and equipment	US$ in thousands	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	341,406
Fixed asset turnover		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	3.10

June 30, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,489,378K ÷ $222,738K
= 6.69

The fixed asset turnover ratio for Alkermes Plc has shown fluctuations over the past few quarters, indicating varying efficiencies in generating revenue from its fixed assets.

In the most recent quarter, ending June 30, 2024, the fixed asset turnover ratio stood at 6.69, which indicates that the company generated $6.69 in revenue for every dollar invested in fixed assets. This represents a significant improvement from the previous quarter's ratio of 7.58, indicating that the company has become more efficient in utilizing its fixed assets to generate revenue.

Looking further back, the trend has been fluctuating, with ratios ranging from a low of 2.95 to a high of 7.58 over the past few quarters. This variability suggests that Alkermes Plc's management of fixed assets in revenue generation has been inconsistent, potentially indicating challenges or changes in the business operations or asset management strategies.

Overall, a higher fixed asset turnover ratio is generally preferred as it signifies a company's ability to efficiently utilize its fixed assets to generate revenue. Alkermes Plc's recent improvement in this ratio is a positive sign, but it will be important to monitor future trends to assess the sustainability of this efficiency.