Alkermes Plc (ALKS)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	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	261,426
Short-term investments	US$ in thousands	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	325,756
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
Cash ratio		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	1.59

June 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($535,150K + $340,967K) ÷ $515,549K
= 1.70

The cash ratio of Alkermes Plc has shown variability over the past few quarters. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations.

Analyzing the trend in Alkermes Plc's cash ratio, we observe that the ratio has fluctuated within a range of 1.14 to 1.77 in the past five quarters. The company's cash ratio peaked at 1.77 in the quarter ending September 30, 2023, indicating a significant improvement in its ability to meet short-term liabilities with cash on hand. On the other hand, the lowest ratio of 1.14 was reported in the quarter ending March 31, 2022, reflecting a relatively lower level of liquidity compared to other quarters.

Overall, the cash ratio of Alkermes Plc has generally remained above 1, indicating a healthy liquidity position and a satisfactory ability to cover short-term obligations with cash reserves. Investors and creditors typically look for a cash ratio above 1 to ensure that a company has sufficient liquid assets to meet its short-term financial commitments.