Alkermes Plc (ALKS)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,639,870 | 1,099,460 | 1,162,060 | 1,032,500 | 1,156,450 |
| Receivables | US$ in thousands | 332,477 | 287,967 | 313,193 | 275,143 | 257,086 |
| Receivables turnover | 4.93 | 3.82 | 3.71 | 3.75 | 4.50 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,639,870K ÷ $332,477K
= 4.93
The receivables turnover ratio of Alkermes plc has shown fluctuating trends over the past five years. In 2023, the ratio stands at 5.00, indicating that the company collected its accounts receivable 5 times during the year. This represents an improvement from the previous year's ratio of 3.86 in 2022.
Comparing this to 2021 and 2020, where the ratios were 3.75 and 3.78 respectively, the company has shown an increasing efficiency in collecting its receivables. However, it is important to note that the 2023 ratio of 5.00 is still lower than the ratio of 4.55 in 2019, suggesting that there may be room for further improvement in managing the collection of receivables.
Overall, the upward trend in the receivables turnover ratio in recent years indicates that Alkermes plc has been more successful in converting its accounts receivable into cash, which can positively impact the company's cash flow and overall financial health.
Peer comparison
Dec 31, 2023