Alkermes Plc (ALKS)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 291,146 | 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 |
| Short-term investments | US$ in thousands | 460,522 | 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 |
| 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 |
| Cash ratio | 1.62 | 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 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($291,146K
+ $460,522K)
÷ $465,199K
= 1.62
The cash ratio of Alkermes Plc has shown some fluctuations over the periods analyzed. 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 that the company has more cash on hand relative to its current liabilities, which can signal a stronger liquidity position.
Alkermes Plc's cash ratio ranged from 1.14 to 2.00, with the lowest point being in December 31, 2021, and the highest in September 30, 2024. The ratio generally stayed above 1, indicating that the company had sufficient cash to cover its short-term obligations during these periods.
It is important to note that a very high cash ratio could suggest that the company is holding onto excess cash that could potentially be used more effectively elsewhere, such as investment in growth opportunities or returning value to shareholders. Conversely, a very low cash ratio may signal liquidity concerns and the potential inability to meet short-term obligations.
Overall, the fluctuations in Alkermes Plc's cash ratio should be further investigated in conjunction with other financial metrics to assess the company's overall financial health and liquidity position accurately.
Peer comparison
Dec 31, 2024