Alkermes Plc (ALKS)

Payables 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
Payables	US$ in thousands	37,037	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
Payables turnover		18.59	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

September 30, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $688,546K ÷ $37,037K
= 18.59

The payables turnover ratio for Alkermes Plc has fluctuated over the past 20 quarters, ranging from a low of 6.88 to a high of 29.97. The ratio measures how efficiently the company is managing its accounts payable by evaluating how many times a company pays off its average accounts payable balance in a given period.

The trend in the payables turnover ratio indicates the company's ability to manage its payment obligations to suppliers. A higher ratio suggests that the company is paying its suppliers more frequently, which may indicate strong liquidity or a strategy to take advantage of early payment discounts. On the other hand, a lower ratio may signal that the company is taking longer to pay its suppliers, potentially straining supplier relationships or indicating cash flow issues.

In the most recent quarter, Alkermes Plc had a payables turnover ratio of 18.59, showing an improvement from the previous quarter's ratio of 6.88. This significant increase may indicate a more efficient management of accounts payable during this period. It is important to further analyze the components of the ratio and compare it with industry benchmarks to gain a deeper understanding of the company's payables management practices.