Alkermes Plc (ALKS)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	891,670	688,546	721,001	768,818	770,818	985,525	952,143	892,530	860,255	863,254	846,075	830,095	796,512	771,471	756,781	741,926	756,643	571,378	591,872	616,264
Inventory	US$ in thousands	182,887	191,087	194,731	198,369	186,406	192,186	189,372	184,984	181,418	166,296	155,608	154,786	150,335	138,696	136,077	134,178	125,738	122,823	116,458	109,314
Inventory turnover		4.88	3.60	3.70	3.88	4.14	5.13	5.03	4.82	4.74	5.19	5.44	5.36	5.30	5.56	5.56	5.53	6.02	4.65	5.08	5.64

December 31, 2024 calculation

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

The inventory turnover ratio for Alkermes Plc has shown some fluctuations over the reported periods. The inventory turnover ratio indicates how efficiently the company is managing its inventory by measuring the number of times the inventory is sold and replaced within a specific period.

Based on the data provided, the inventory turnover ratio for Alkermes Plc ranged from 3.60 to 6.02 over the reported periods. The highest inventory turnover ratio was observed on December 31, 2020, at 6.02, indicating that the company efficiently turned over its inventory during that period. On the other hand, the lowest inventory turnover ratio was recorded on December 31, 2024, at 3.60, suggesting a comparatively slower inventory turnover rate.

Overall, the inventory turnover ratios for Alkermes Plc have generally ranged between 3.60 and 6.02, with some fluctuations. A higher inventory turnover ratio is generally considered positive as it indicates that the company is selling its inventory quickly, which can lead to better cash flow and profitability. However, a very high ratio may also suggest stockouts or lost sales.

It is essential for Alkermes Plc to closely monitor its inventory turnover ratio to ensure efficient inventory management, optimal stocking levels, and sustainable operations. Analyzing the trends in this ratio can help the company make informed decisions regarding inventory control, production planning, and working capital management.