Alkermes Plc (ALKS)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	US$ in thousands	291,146	457,469	292,473	337,544	272,961
Short-term investments	US$ in thousands	460,522	316,022	315,992	198,767	362,066
Receivables	US$ in thousands	384,528	332,477	287,967	313,193	275,143
Total current liabilities	US$ in thousands	465,199	520,220	497,742	471,286	438,258
Quick ratio		2.44	2.13	1.80	1.80	2.08

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($291,146K + $460,522K + $384,528K) ÷ $465,199K
= 2.44

The quick ratio of Alkermes Plc, a pharmaceutical company, has shown a relatively stable trend over the past five years.

As of December 31, 2020, the quick ratio was 2.08, indicating that the company had $2.08 in liquid assets available to cover each $1 of current liabilities on its balance sheet. This suggests a strong liquidity position, as a quick ratio above 1 signifies that the company can meet its short-term obligations without relying heavily on inventory.

In the following years, the quick ratio remained above 1, standing at 1.80 as of December 31, 2021, and maintaining this level through December 31, 2022. This indicates that Alkermes Plc continued to maintain a healthy liquidity position, although there was a slight decrease from the initial ratio in 2020.

By December 31, 2023, the quick ratio improved to 2.13, reflecting an increase in the company's ability to cover its short-term liabilities with liquid assets. This trend continued into December 31, 2024, with a quick ratio of 2.44, indicating a further strengthening of liquidity.

Overall, the consistent quick ratio figures above 1 suggest that Alkermes Plc has maintained a solid liquidity position over the years, indicating its ability to meet its short-term obligations comfortably using its current liquid assets.