Alkermes Plc (ALKS)

Total asset 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
Total assets	US$ in thousands	2,136,220	1,963,980	2,024,480	1,949,730	1,805,400
Total asset turnover		0.77	0.56	0.57	0.53	0.64

December 31, 2023 calculation

Total asset turnover = Revenue ÷ Total assets
= $1,639,870K ÷ $2,136,220K
= 0.77

Total asset turnover is a financial ratio that indicates how efficiently a company is using its assets to generate revenue. In the case of Alkermes plc, the total asset turnover has fluctuated over the past five years.

In 2023, the total asset turnover ratio was 0.78, indicating that the company generated $0.78 in revenue for every $1 of assets. This represents an improvement from the previous year, where the ratio was 0.57.

Comparing the total asset turnover ratios from 2021 to 2023, there seems to be a pattern of improvement in asset utilization efficiency. In 2021, the ratio was 0.58, which slightly increased to 0.65 in 2019, before jumping to 0.78 in 2023.

Overall, the increasing trend in total asset turnover suggests that Alkermes plc has been more effective in generating sales from its assets in recent years, indicating improved efficiency in asset management and potentially better operational performance. However, it would be beneficial to continue monitoring this ratio to ensure sustained operational efficiency.