Alkermes Plc (ALKS)

Liquidity ratios

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
Current ratio 3.04 3.45 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
Quick ratio 2.44 2.81 2.41 2.31 2.13 2.44 2.39 1.76 1.80 1.78 1.89 1.68 1.80 1.88 2.18 2.14 2.08 2.21 2.40 2.19
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

Alkermes Plc's liquidity ratios demonstrate the company's ability to meet its short-term obligations efficiently.

1. Current Ratio: This ratio indicates the company's ability to cover its short-term liabilities with its short-term assets. Alkermes Plc has maintained a healthy current ratio above 2 for the past few years, which is considered favorable. The ratio has shown some fluctuations but generally remains strong, indicating the company's strong liquidity position.

2. Quick Ratio: The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity as it excludes inventories from current assets. Alkermes Plc's quick ratio has also been above 1.5, reflecting the company's ability to meet its short-term obligations without relying heavily on inventory liquidation.

3. Cash Ratio: The cash ratio measures the company's ability to cover short-term liabilities using only its most liquid assets, cash and cash equivalents. Alkermes Plc has maintained a consistent cash ratio above 1, indicating a strong ability to settle its short-term obligations with cash readily available.

Overall, based on the analysis of Alkermes Plc's liquidity ratios, the company appears to be in a stable financial position with sufficient liquidity to meet its short-term obligations effectively.

Additional liquidity measure

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 conversion cycle days 146.69 171.46 135.35 125.33 131.18 117.47 124.74 149.33 158.64 140.04 126.98 132.48 141.73 142.34 149.17 134.01 135.72 109.09 115.80 115.47

The cash conversion cycle of Alkermes Plc has shown fluctuating trends over the analyzed period from March 31, 2020, to December 31, 2024. The company's cash conversion cycle is a measure of how efficiently it manages its working capital in terms of converting its resources into cash.

From the given data, it is observed that Alkermes Plc had a relatively stable cash conversion cycle in the beginning, hovering around 115 to 135 days from 2020 to 2021. However, there was an increase noted in the cycle in the later periods, particularly towards the end of 2022 and throughout 2023, with the cycle lengthening to 158.64 days by December 31, 2022.

The trend reversed in the subsequent periods, as the cash conversion cycle decreased notably in June 30, 2023, and continued to show improvements until December 31, 2024. The most significant drop was observed in September 30, 2023, with a cycle of 117.47 days, indicating better efficiency in managing the company's working capital.

Overall, fluctuations in the cash conversion cycle can be influenced by factors such as inventory management, accounts receivable, and accounts payable policies. Companies typically aim to have a shorter cash conversion cycle to optimize their liquidity and cash flow, as a longer cycle can tie up resources and impact financial health. Alkermes Plc's management may need to continuously monitor and adjust its operating cycle to ensure effective utilization of resources and maintain healthy cash flows.