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.