Alkermes Plc (ALKS)

Current 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
Total current assets	US$ in thousands	1,542,190	1,468,820	1,485,510	1,464,780	1,397,350	1,110,060	1,130,310	1,053,800	1,045,990	1,014,830	1,062,170	1,053,010	1,037,760	1,006,010	1,110,970	1,024,940	947,359	912,584	961,970	997,918
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
Current ratio		2.99	3.20	2.86	2.91	2.87	2.25	2.27	2.24	2.39	2.19	2.25	2.32	2.71	2.75	2.53	2.71	2.95	2.69	2.46	2.69

June 30, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,542,190K ÷ $515,549K
= 2.99

The current ratio for Alkermes Plc has shown fluctuations over the past several quarters. The ratio measures the company's ability to cover its short-term liabilities with its short-term assets.

Looking at the trend, the current ratio has generally been above 2, indicating that Alkermes Plc has a comfortable level of current assets relative to its current liabilities. A current ratio above 1 typically suggests that the company is in a good position to meet its short-term obligations.

In the most recent quarter, the current ratio was 2.99, showing an improvement from the previous quarter's ratio of 3.20. This may suggest that the company has slightly fewer current assets relative to its current liabilities compared to the previous quarter, but it still remains at a healthy level.

It is important to note that while a high current ratio can indicate good short-term liquidity, an extremely high ratio may suggest that the company is not efficiently deploying its current assets. On the other hand, a low current ratio may indicate potential liquidity issues.

Overall, the current ratio trend for Alkermes Plc appears to show stability and a strong ability to meet its short-term obligations. Analysing this ratio in conjunction with other financial metrics can provide a more comprehensive assessment of the company's financial health.