Alkermes Plc (ALKS)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,556,830 | 1,639,870 | 1,099,460 | 1,162,060 | 1,032,500 |
| Total current assets | US$ in thousands | 1,415,360 | 1,485,510 | 1,130,310 | 1,062,170 | 1,110,970 |
| Total current liabilities | US$ in thousands | 465,199 | 520,220 | 497,742 | 471,286 | 438,258 |
| Working capital turnover | 1.64 | 1.70 | 1.74 | 1.97 | 1.53 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,556,830K ÷ ($1,415,360K – $465,199K)
= 1.64
The working capital turnover ratio for Alkermes Plc has shown mixed performance over the past five years, ranging from 1.53 in December 2020 to 1.97 in December 2021. This ratio reflects how efficiently the company is managing its working capital to generate sales revenue. A higher ratio indicates that the company is effectively using its working capital to support sales activities.
In 2021, Alkermes Plc achieved a notable increase in its working capital turnover, reaching 1.97, which suggests that the company improved its working capital management efficiency significantly during that year. However, in the subsequent years, the ratio decreased, settling at 1.64 by December 2024.
The declining trend in the working capital turnover ratio from 2021 to 2024 may indicate potential challenges in managing working capital efficiently to support sales growth. It could be a signal for the company to reevaluate its working capital management strategies to ensure optimal utilization of resources and liquidity to drive sales performance in the future.
Peer comparison
Dec 31, 2024