Alkermes Plc (ALKS)

Quick ratio

		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	US$ in thousands	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	261,426
Short-term investments	US$ in thousands	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	325,756
Receivables	US$ in thousands	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	250,234
Total current liabilities	US$ in thousands	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	370,394
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

June 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($535,150K + $340,967K + $366,415K) ÷ $515,549K
= 2.41

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio greater than 1 indicates that a company has enough liquid assets to cover its current liabilities.

Looking at Alkermes Plc's quick ratio over the past few quarters, we can see that it has varied between 1.68 and 2.44. Generally, the quick ratio has stayed above 1.5, indicating that the company has a strong ability to meet its short-term obligations using its liquid assets.

The trend in the quick ratio shows some fluctuations but has generally remained at a healthy level, reflecting the company's ability to manage its short-term liquidity effectively. However, it is important to note that a quick ratio above 1 does not necessarily mean that the company is utilizing its assets efficiently, as too high a ratio may indicate an excess of cash or cash equivalents that could be better utilized elsewhere.

Overall, based on the historical quick ratio data, Alkermes Plc appears to have a sound liquidity position, indicating that it is well positioned to meet its short-term obligations.