Alkermes Plc (ALKS)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	1,415,360	1,485,510	1,130,310	1,062,170	1,110,970
Total current liabilities	US$ in thousands	465,199	520,220	497,742	471,286	438,258
Current ratio		3.04	2.86	2.27	2.25	2.53

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,415,360K ÷ $465,199K
= 3.04

Based on the provided data, Alkermes Plc's current ratio has been relatively stable over the past five years. The current ratio is a measure of a company's ability to cover its short-term liabilities with its short-term assets.

Alkermes Plc's current ratio ranged from 2.25 to 3.04 during the period from December 31, 2020, to December 31, 2024. A current ratio above 1 indicates that the company has more current assets than current liabilities, which generally suggests good liquidity and the ability to meet its short-term obligations.

With a current ratio consistently above 2 throughout the period, Alkermes Plc appears to have a comfortable cushion to cover its short-term liabilities with its current assets. A higher current ratio indicates that the company may be in a better position to cover its short-term obligations without facing liquidity issues.

Overall, the trend in Alkermes Plc's current ratio over the past five years suggests that the company has maintained a healthy liquidity position, which is an important aspect of financial health and stability.