Alkermes Plc (ALKS)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	457,469	292,473	337,544	272,961	203,771
Short-term investments	US$ in thousands	316,022	315,992	198,767	362,066	331,208
Receivables	US$ in thousands	332,477	287,967	313,193	275,143	257,086
Total current liabilities	US$ in thousands	520,220	497,742	471,286	438,258	391,112
Quick ratio		2.13	1.80	1.80	2.08	2.03

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($457,469K + $316,022K + $332,477K) ÷ $520,220K
= 2.13

The quick ratio of Alkermes plc has shown fluctuations over the past five years. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.

In 2023, the quick ratio improved to 2.32, indicating that the company had $2.32 of liquid assets available to cover each dollar of current liabilities. This suggests a strong ability to meet short-term obligations without relying heavily on inventory or other less liquid assets.

In 2022 and 2021, the quick ratio was relatively stable at 1.91 and 1.93 respectively, indicating the company's consistent ability to cover its short-term liabilities with liquid assets.

The quick ratio was highest in 2020 at 2.25, indicating a peak in the company's liquidity position, possibly due to effective management of current assets and liabilities.

In 2019, the quick ratio was 2.20, showing a slightly lower but still strong liquidity position compared to the following years.

Overall, Alkermes plc has maintained a healthy quick ratio above 1, demonstrating its ability to meet short-term obligations comfortably with its liquid assets. The fluctuations in the quick ratio over the years could be attributed to changes in the composition of current assets and liabilities, reflecting the company's liquidity management strategies and operational efficiency.