Alkermes Plc (ALKS)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 4.03 4.06 4.06 5.39 4.93 4.65 4.32 4.11 3.82 4.36 4.73 4.76 3.71 3.88 3.67 4.26 3.75 4.37 4.84 4.78
Payables turnover 19.54 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
Working capital turnover 1.63 1.34 1.45 1.69 1.70 1.63 1.59 1.79 1.74 1.92 1.92 2.16 1.97 1.87 1.67 1.62 1.53 1.79 1.84 2.06

Alkermes Plc's activity ratios provide insight into how effectively the company manages its assets and liabilities to generate revenue.

1. Inventory Turnover:
- Alkermes' inventory turnover ratio declined from 5.64 in March 2020 to 3.60 in September 2024, indicating a decreasing trend in the efficiency of selling and replenishing inventory.
- A lower inventory turnover may suggest excess inventory levels, obsolescence, or inefficiencies in production and sales processes.

2. Receivables Turnover:
- The receivables turnover ratio fluctuated over the years, ranging from 3.67 in June 2020 to 5.39 in March 2024.
- A higher receivables turnover implies faster collection of receivables, which is positive as it indicates better credit management and liquidity.

3. Payables Turnover:
- Alkermes' payables turnover ratio varied significantly, with a peak of 29.97 in March 2022 and a low of 6.88 in June 2024.
- A higher payables turnover reflects the company's ability to settle its obligations quickly, potentially benefitting from favorable credit terms or efficient cash management.

4. Working Capital Turnover:
- The working capital turnover ratio ranged from 1.45 in June 2024 to 2.16 in March 2022, indicating fluctuations in the efficiency of utilizing working capital to generate sales.
- A higher working capital turnover suggests that the company efficiently utilizes its working capital to support operations and generate revenue.

Overall, analyzing these activity ratios helps assess Alkermes' operational efficiency, inventory management, receivables collection, payables management, and working capital utilization over the reporting periods.

Average number of days

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
Days of inventory on hand (DOH) days 74.86 101.30 98.58 94.18 88.27 71.18 72.59 75.65 76.97 70.31 67.13 68.06 68.89 65.62 65.63 66.01 60.66 78.46 71.82 64.74
Days of sales outstanding (DSO) days 90.50 89.80 89.80 67.74 74.00 78.53 84.58 88.87 95.60 83.77 77.12 76.60 98.37 94.17 99.36 85.76 97.27 83.54 75.39 76.30
Number of days of payables days 18.68 19.63 53.03 36.58 31.09 32.23 32.44 15.19 13.94 14.04 17.28 12.18 25.53 17.45 15.82 17.76 22.21 52.92 31.42 25.57

Based on the provided data, we can analyze Alkermes Plc's activity ratios as follows:

1. Days of Inventory on Hand (DOH):
- Alkermes Plc's DOH has shown fluctuations over the periods, ranging from a low of 60.66 days to a high of 101.30 days.
- The company's inventory holding period has generally increased over time, indicating potential inefficiencies in managing inventory levels.
- Alkermes should aim to optimize its inventory management to reduce the DOH and improve cash flow.

2. Days of Sales Outstanding (DSO):
- The DSO for Alkermes has varied, with values ranging from 67.74 days to 99.36 days.
- The trend in DSO shows some volatility, with peaks and troughs observed over the periods.
- Alkermes should focus on accelerating the collection of receivables to shorten the DSO period and enhance cash flows.

3. Number of Days of Payables:
- The number of days of payables for Alkermes has fluctuated, ranging from as low as 12.18 days to as high as 53.03 days.
- The company's payable period has shown variability, suggesting changes in its payment policies or supplier relationships.
- Alkermes could consider optimizing its payables management to strike a balance between timely payments and maintaining good vendor relationships.

In conclusion, Alkermes Plc should closely monitor and manage its activity ratios to streamline operations, improve efficiency, and enhance overall financial performance.

Long-term

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
Fixed asset turnover 6.82 6.62 6.69 7.58 7.23 4.79 4.46 3.44 4.93 3.43 3.45 3.54 3.41 3.29 3.18 2.99 2.95 3.27 3.18 3.26
Total asset turnover 0.75 0.69 0.67 0.80 0.77 0.69 0.66 0.57 0.56 0.58 0.59 0.60 0.57 0.56 0.56 0.55 0.53 0.62 0.64 0.65

Alkermes Plc's Fixed Asset Turnover ratio has shown fluctuating trends over the years. From March 31, 2020, to December 31, 2024, the ratio increased gradually, peaking at 7.58 in March 31, 2024. This indicates that the company generated $7.58 in revenue for every dollar invested in fixed assets by the end of March 2024.

On the other hand, the Total Asset Turnover ratio, which measures how efficiently the company uses its total assets to generate revenue, experienced some variability. It ranged from 0.53 to 0.80 from December 31, 2020, to March 31, 2024. The highest ratio of 0.80 recorded on March 31, 2024, suggests that the company generated $0.80 in revenue for each dollar of total assets.

Overall, the increased Fixed Asset Turnover ratio and Total Asset Turnover ratio over the years indicate a more efficient utilization of assets by Alkermes Plc, which can be a positive signal for stakeholders and investors.