Alkermes Plc (ALKS)

Quick ratio

		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	Dec 31, 2019
Cash	US$ in thousands	396,293	535,150	420,753	457,469	647,711	665,795	321,401	292,473	263,957	254,646	282,557	337,544	310,444	258,341	205,028	272,961	240,866	189,002	176,067	203,771
Short-term investments	US$ in thousands	512,571	340,967	324,295	316,022	241,439	163,254	279,058	315,992	316,225	326,321	246,315	198,767	249,856	280,004	335,967	362,066	328,516	343,561	319,927	331,208
Receivables	US$ in thousands	367,211	366,415	315,848	332,477	337,697	334,478	269,178	287,967	257,173	245,840	249,942	313,193	289,160	297,357	243,514	275,143	265,644	237,393	246,716	257,086
Total current liabilities	US$ in thousands	453,705	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
Quick ratio		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	2.03

September 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($396,293K + $512,571K + $367,211K) ÷ $453,705K
= 2.81

The quick ratio of Alkermes Plc has been displaying a generally favorable trend over the past few quarters. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.

The quick ratio has ranged from a low of 1.68 to a high of 2.81 during the period under review. A quick ratio above 1 indicates that the company has an adequate level of liquid assets to cover its short-term liabilities.

The quick ratio has consistently been above 2 in recent quarters, indicating a strong ability to meet short-term obligations without having to rely heavily on inventory. This demonstrates a good liquidity position for the company, providing a buffer against potential financial stress.

Overall, the upward trend in the quick ratio suggests that Alkermes Plc has been maintaining a healthy liquidity position, which is essential for supporting operational stability and meeting financial obligations in the short term.