Alkermes Plc (ALKS)
Working capital turnover
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 1,550,854 | 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 |
| Total current assets | US$ in thousands | 1,415,360 | 1,564,180 | 1,542,190 | 1,468,820 | 1,485,510 | 1,464,780 | 1,397,350 | 1,110,060 | 1,130,310 | 1,053,800 | 1,045,990 | 1,014,830 | 1,062,170 | 1,053,010 | 1,037,760 | 1,006,010 | 1,110,970 | 1,024,940 | 947,359 | 912,584 |
| Total current liabilities | US$ in thousands | 465,199 | 453,705 | 515,549 | 458,977 | 520,220 | 503,107 | 487,185 | 492,910 | 497,742 | 469,555 | 438,518 | 462,361 | 471,286 | 452,984 | 383,442 | 365,842 | 438,258 | 378,151 | 321,414 | 339,849 |
| Working capital turnover | 1.63 | 1.34 | 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,550,854K ÷ ($1,415,360K – $465,199K)
= 1.63
Alkermes Plc's working capital turnover ratio measures the efficiency of the company's management of its working capital in generating revenue. The trend of the working capital turnover ratio from March 2020 to December 2024 shows some fluctuations.
Starting at 2.06 in March 2020, the ratio gradually decreased to 1.53 by December 2020, indicating a decrease in the company's ability to efficiently utilize its working capital to generate sales.
Subsequently, there was a moderate improvement in the ratio, reaching 1.97 by December 2021. However, the ratio fluctuated in the following periods, showing mixed performance in managing working capital efficiently.
The ratio peaked at 2.16 in March 2022, indicating an improvement in utilizing working capital to generate revenue. However, it decreased to 1.34 by September 2024, suggesting a decline in the efficiency of working capital management during this period.
Overall, the working capital turnover ratio for Alkermes Plc has shown fluctuations over the years, indicating varying levels of efficiency in utilizing working capital to drive sales. It is important for the company to closely monitor and manage its working capital to ensure optimal performance and sustainable growth.
Peer comparison
Dec 31, 2024