Alkermes Plc (ALKS)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	1,485,510	1,130,310	1,062,170	1,110,970	961,970
Total current liabilities	US$ in thousands	520,220	497,742	471,286	438,258	391,112
Current ratio		2.86	2.27	2.25	2.53	2.46

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,485,510K ÷ $520,220K
= 2.86

The current ratio of Alkermes plc has demonstrated some fluctuations over the past five years. The ratio stood at 2.86 as of December 31, 2023, indicating an increase from the previous year. This suggests that the company had $2.86 in current assets for every $1 in current liabilities, highlighting a strong liquidity position to meet its short-term obligations.

Comparing this to the trend over the last few years, we observe that the current ratio has generally been above 2. This indicates that Alkermes plc has consistently maintained a healthy balance between its current assets and current liabilities, providing a cushion to cover its short-term financial commitments and operational expenses.

The slight fluctuations in the current ratio over the years could be attributed to changes in the company's working capital management, variations in asset or liability levels, or shifts in business strategies impacting liquidity. However, the overall trend reflects a reasonably stable liquidity position for Alkermes plc, ensuring the ability to manage short-term financial obligations efficiently.