Alkermes Plc (ALKS)

Total asset 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
Revenue (ttm)	US$ in thousands	1,492,589	1,489,378	1,701,960	1,639,873	1,569,557	1,443,430	1,105,567	1,099,455	1,120,608	1,163,507	1,190,967	1,162,061	1,120,829	1,092,326	1,036,423	1,032,497	1,160,605	1,149,262	1,180,207	1,156,446
Total assets	US$ in thousands	2,155,290	2,206,840	2,123,900	2,136,220	2,279,230	2,187,180	1,922,730	1,963,980	1,941,900	1,957,420	1,977,840	2,024,480	1,995,430	1,937,570	1,878,220	1,949,730	1,876,820	1,802,340	1,825,950	1,805,400
Total asset turnover		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	0.64

September 30, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $1,492,589K ÷ $2,155,290K
= 0.69

The total asset turnover ratio for Alkermes Plc has shown volatility over the past few years, ranging from 0.53 to 0.80. In general, the total asset turnover ratio measures the efficiency of a company in generating sales revenue from its total assets. A higher ratio indicates that the company is more efficient in utilizing its assets to generate sales.

Looking at the trend over the periods provided, we can see fluctuations in the ratio with some improvements and declines. In particular, the ratio seems to have increased from 0.53 in December 2020 to a peak of 0.80 in March 2024 before experiencing a slight decline to 0.69 by September 2024. This indicates that the company has improved its efficiency in generating sales relative to its total assets during this period.

It is important to note that a low total asset turnover ratio may suggest underutilization of assets or inefficiencies in sales generation, while a high ratio may indicate potential overutilization of assets or aggressive sales tactics. Therefore, further analysis and comparison with industry benchmarks would be necessary to fully understand the company's performance in utilizing its assets effectively to generate sales.