Alkermes Plc (ALKS)

Working capital turnover

		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	Sep 30, 2019
Revenue (ttm)	US$ in thousands	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	1,057,796
Total current assets	US$ in thousands	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	961,970	997,918
Total current liabilities	US$ in thousands	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	391,112	370,394
Working capital turnover		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	2.03	1.69

June 30, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,489,378K ÷ ($1,542,190K – $515,549K)
= 1.45

The working capital turnover ratio for Alkermes Plc has shown fluctuations over the past several quarters. This ratio indicates how efficiently the company is utilizing its working capital to generate revenue.

From the data provided, we can see that the working capital turnover ratio has ranged from 1.45 to 2.16 over the last few years. A higher ratio generally indicates better efficiency in managing working capital.

The trend in the working capital turnover ratio shows variability, with some quarters demonstrating higher efficiency compared to others. Specifically, in the most recent quarter, the ratio stood at 1.45, which was below the average of the previous quarters. This may suggest a temporary decrease in efficiency in utilizing the company's working capital to generate sales.

Overall, a thorough analysis of the company's working capital management practices and revenue generation strategies would be needed to fully understand the implications of these fluctuations in the working capital turnover ratio. Further investigation into the factors influencing the ratio is necessary to assess the company's financial performance and operational efficiency accurately.