Alkermes Plc (ALKS)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	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	622,486
Inventory	US$ in thousands	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	101,803
Inventory turnover		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	6.11

September 30, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $688,546K ÷ $191,087K
= 3.60

The inventory turnover ratio for Alkermes Plc has shown a fluctuating trend over the past few years. The ratio measures how efficiently the company is managing its inventory by indicating how many times a company sells and replaces its inventory during a specific period.

From December 2019 to September 2020, the inventory turnover ratio gradually increased from 6.11 to 6.02, indicating an improvement in inventory management efficiency. However, there was a decline in the ratio from September 2020 to December 2020, dropping to 5.64.

Throughout 2021, the inventory turnover ratio remained relatively stable, ranging between 5.36 and 5.56. This suggests that Alkermes Plc maintained a consistent level of inventory management efficiency during this period.

In 2022, there was a slight increase in the inventory turnover ratio, with values ranging from 5.19 to 5.44. This uptrend continued into 2023, where the ratio further improved to range between 4.74 and 5.13.

The most recent data shows a slight decrease in inventory turnover from March 2024 to September 2024, dropping from 3.88 to 3.60. This decrease may indicate a longer time taken to sell and replace inventory during this period.

Overall, Alkermes Plc's inventory turnover ratio has shown variations over the years, but the company has generally maintained a healthy level of efficiency in managing its inventory. It is important for the company to closely monitor its inventory turnover to ensure optimal management of its working capital and operational effectiveness.