Alkermes Plc (ALKS)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	891,670	984,446	860,255	796,512	756,643
Inventory	US$ in thousands	182,887	186,406	181,418	150,335	125,738
Inventory turnover		4.88	5.28	4.74	5.30	6.02

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $891,670K ÷ $182,887K
= 4.88

The inventory turnover ratio of Alkermes Plc has experienced fluctuations over the past five years. As of December 31, 2020, the inventory turnover ratio was 6.02, indicating that the company sold and replaced its inventory approximately 6.02 times during the year.

However, in the subsequent years, the inventory turnover ratio decreased. By December 31, 2021, the ratio declined to 5.30, and further decreased to 4.74 by December 31, 2022. This declining trend suggests that the company may be holding onto its inventory for a longer period or facing challenges in managing its inventory efficiently.

There was a slight improvement in the inventory turnover ratio by December 31, 2023, as it increased to 5.28. Nevertheless, by December 31, 2024, the ratio dropped to 4.88.

Overall, these fluctuations in the inventory turnover ratio indicate potential issues with inventory management efficiency within Alkermes Plc. The company may need to focus on optimizing its inventory levels and processes to enhance operational performance and profitability.