Alkermes Plc (ALKS)

Liquidity ratios

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
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
Quick ratio 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 2.03 2.26
Cash ratio 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 1.37 1.59

Alkermes Plc's liquidity ratios, as represented by the current ratio, quick ratio, and cash ratio, have shown fluctuating trends over the past few quarters.

The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has generally been above 2. This indicates that Alkermes Plc has a strong ability to cover its short-term liabilities using its current assets, reflecting a healthy liquidity position.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also remained relatively high, indicating that Alkermes Plc can meet its short-term obligations without relying on selling inventory. However, the quick ratio has shown slightly more variability compared to the current ratio.

The cash ratio, which measures the company's ability to cover its current liabilities with its cash and cash equivalents, paints a similar picture of strong liquidity. Alkermes Plc has consistently maintained a healthy level of cash reserves relative to its current liabilities, providing a cushion for short-term financial needs.

Overall, the liquidity ratios suggest that Alkermes Plc is well-positioned to meet its short-term financial obligations and has a solid liquidity position, which is crucial for financial stability and operational flexibility.

Additional liquidity measure

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
Cash conversion cycle days 135.35 125.33 131.18 117.47 124.74 149.33 158.64 140.04 126.98 132.48 141.73 142.34 149.17 134.01 135.72 109.09 115.80 115.47 109.02 95.04

The cash conversion cycle of Alkermes Plc has shown some fluctuations over the past few quarters. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flow from sales. A longer cash conversion cycle typically indicates inefficiencies in managing working capital.

Looking at the data, we can see that Alkermes Plc's cash conversion cycle ranged from a high of 158.64 days in December 2022 to a low of 95.04 days in September 2019. The company experienced a peak in the cash conversion cycle in December 2022, which could be a sign of inventory management issues or delays in collecting receivables. Conversely, the lowest point in the cycle in September 2019 indicates a more efficient working capital management.

Overall, Alkermes Plc should aim to reduce its cash conversion cycle to improve its liquidity and efficiency in converting investments into cash. This could involve streamlining inventory management, optimizing accounts receivable processes, and negotiating better payment terms with suppliers. By effectively managing the cash conversion cycle, Alkermes Plc can strengthen its financial position and improve its operational performance.