Alkermes Plc (ALKS)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 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 8.14
Receivables turnover 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 4.50 4.23
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
Working capital turnover 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 2.03 1.69

Alkermes Plc's activity ratios over the analyzed period show fluctuations in the efficiency of managing its resources.

1. Inventory Turnover: The company's inventory turnover ratio has been relatively stable, indicating that inventory is being managed efficiently. However, there was a slight decrease in inventory turnover from Jun 30, 2022, to Mar 31, 2023.

2. Receivables Turnover: Alkermes Plc's receivables turnover ratio has varied over time, but generally shows that the company is collecting its receivables at a moderate pace. There was a notable increase in receivables turnover from Mar 31, 2023, to Mar 31, 2024.

3. Payables Turnover: The payables turnover ratio has been fluctuating significantly, suggesting changes in the company's payment policies or relationships with suppliers. There was a substantial decrease in payables turnover from Mar 31, 2023, to Sep 30, 2023.

4. Working Capital Turnover: The working capital turnover ratio has also shown fluctuations, indicating variations in the efficiency of utilizing working capital to generate sales revenue. Notably, there was a peak in working capital turnover on Sep 30, 2022.

Overall, while Alkermes Plc's activity ratios demonstrate some volatility, the company generally appears to effectively manage its inventory, receivables, payables, and working capital to support its operations and financial performance.

Average number of days

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
Days of inventory on hand (DOH) days 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 59.69 44.86
Days of sales outstanding (DSO) days 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 81.14 86.35
Number of days of payables days 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 31.82 36.17

Alkermes Plc's activity ratios provide insights into the efficiency of the company's operations in managing inventory, collecting receivables, and paying its suppliers.

1. Days of Inventory on Hand (DOH):
- Alkermes Plc's DOH has shown a fluctuating trend over the past few quarters, ranging from 44.86 days to 98.58 days.
- On average, the company holds inventory for around 70-80 days before selling or using it.
- The increasing trend in recent quarters indicates a slower turnover of inventory, which may lead to higher carrying costs and potential obsolescence risks.
- Alkermes Plc may need to review its inventory management practices to optimize stock levels and improve cash flow.

2. Days of Sales Outstanding (DSO):
- Alkermes Plc's DSO has also varied significantly, ranging from 67.74 days to 99.36 days.
- The company takes an average of around 80 days to collect its receivables from customers.
- A decreasing trend in DSO is generally favorable as it indicates a faster cash conversion cycle.
- However, the recent spike in DSO suggests potential challenges in timely collection of receivables, which could affect liquidity and working capital management.

3. Number of Days of Payables:
- Alkermes Plc's days of payables have fluctuated between 12.18 days and 53.03 days.
- The company, on average, takes around 30 days to pay its suppliers.
- A longer payables period indicates favorable terms with suppliers, allowing Alkermes Plc to conserve cash and improve cash conversion cycle.
- However, a significant decrease in days of payables in some quarters may indicate potential liquidity constraints or changes in vendor payment policies.

In conclusion, Alkermes Plc should focus on optimizing inventory levels, streamlining accounts receivable collection processes, and maintaining beneficial payment terms with suppliers to enhance operational efficiency and cash flow management. Monitoring and improving these activity ratios can help the company achieve a better balance between liquidity, profitability, and working capital management.

Long-term

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
Fixed asset turnover 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 3.19 3.10
Total asset turnover 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 0.64 0.60

The fixed asset turnover ratio of Alkermes Plc has shown fluctuation over the periods under consideration, with a range of 2.95 to 7.58. This ratio indicates that the company generates between $2.95 and $7.58 in revenue for every dollar invested in fixed assets. A higher fixed asset turnover ratio suggests that the company is utilizing its fixed assets more efficiently to generate sales.

On the other hand, the total asset turnover ratio has also varied, with values ranging from 0.53 to 0.80. This ratio reflects that Alkermes Plc generates between $0.53 and $0.80 in sales for every dollar of assets it owns. A higher total asset turnover ratio indicates that the company is effectively using its total assets to generate revenue.

Overall, Alkermes Plc's performance in terms of asset turnover ratios demonstrates some volatility, albeit with a general trend of improvement in both fixed asset turnover and total asset turnover ratios over the periods analyzed. This indicates the company's ability to efficiently utilize its assets to generate revenue and potentially improve profitability over time.