Alkermes Plc (ALKS)

Payables 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
Cost of revenue (ttm)	US$ in thousands	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	821,602
Payables	US$ in thousands	104,747	77,052	65,649	87,036	84,616	37,147	32,843	33,199	40,047	27,697	55,721	36,875	32,798	36,097	46,034	82,835	50,944	43,177	54,261	81,417
Payables turnover		6.88	9.98	11.74	11.32	11.25	24.03	26.19	26.00	21.13	29.97	14.29	20.92	23.07	20.55	16.44	6.90	11.62	14.27	11.47	10.09

June 30, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $721,001K ÷ $104,747K
= 6.88

The payables turnover ratio reflects how efficiently a company manages its trade credit by paying off its suppliers. A higher payables turnover ratio indicates that the company is efficiently managing its payables by paying them off quickly.

Analyzing Alkermes Plc's payables turnover ratio over the last several quarters, we observe fluctuations in performance. The ratio has shown a general increasing trend over recent quarters, indicating an improvement in the company's ability to pay off its suppliers' invoices efficiently.

However, it is essential to highlight the substantial variation in the payables turnover ratio, indicating potential shifts in the company's payment practices or relationships with suppliers. For instance, there was a notable spike in the ratio in the first quarter of 2023, possibly indicating a change in payment terms or a specific event affecting payables management.

Overall, a consistent upward trend in the payables turnover ratio is a positive signal of efficient payables management. However, investors and stakeholders should continue monitoring this ratio alongside other financial metrics to gain a comprehensive understanding of Alkermes Plc's financial performance and liquidity management.