Alkermes Plc (ALKS)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	396,293	535,150	420,753	457,469	647,711	665,795	321,401	292,473	263,957	254,646	282,557	337,544	310,444	258,341	205,028	272,961	240,866	189,002	176,067	203,771
Short-term investments	US$ in thousands	512,571	340,967	324,295	316,022	241,439	163,254	279,058	315,992	316,225	326,321	246,315	198,767	249,856	280,004	335,967	362,066	328,516	343,561	319,927	331,208
Total current liabilities	US$ in thousands	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	391,112
Cash ratio		2.00	1.70	1.62	1.49	1.77	1.70	1.22	1.22	1.24	1.32	1.14	1.14	1.24	1.40	1.48	1.45	1.51	1.66	1.46	1.37

September 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($396,293K + $512,571K) ÷ $453,705K
= 2.00

The cash ratio of Alkermes Plc has shown fluctuations over the past few years, ranging from a low of 1.14 to a high of 2.00. The ratio indicates the company's ability to cover its short-term liabilities with cash and cash equivalents. A higher cash ratio is generally seen as favorable, as it signifies a stronger ability to meet immediate obligations without relying on external sources of funding.

Analyzing the trend of the cash ratio, we can observe that it has generally been above 1, indicating that Alkermes Plc has had sufficient cash reserves to cover its short-term debt obligations. The ratio peaked at 2.00 in September 2024, indicating a particularly strong position in terms of cash liquidity at that point in time.

Overall, the cash ratio of Alkermes Plc demonstrates a relatively stable liquidity position, with some variability over time. It is essential for the company to maintain an adequate level of cash reserves to manage its short-term financial commitments effectively and weather any potential liquidity challenges that may arise. Further monitoring of the cash ratio will be crucial to assess the company's liquidity position in the future.