Alkermes Plc (ALKS)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 42.73% | 39.97% | 21.76% | 31.46% | 26.72% |
| Operating profit margin | 27.02% | 25.25% | -0.55% | -2.52% | -10.89% |
| Pretax margin | 28.18% | 15.74% | -15.22% | -3.38% | -9.35% |
| Net profit margin | 23.58% | 21.69% | -14.39% | -4.15% | -10.74% |
Alkermes Plc's profitability ratios show fluctuations over the years. The gross profit margin increased from 26.72% in 2020 to 42.73% in 2024, indicating an improvement in the efficiency of production and pricing strategies.
The operating profit margin saw a significant turnaround from negative figures in 2020 and 2021 to 27.02% in 2024, reflecting better cost management and operational efficiency. This indicates the company's ability to generate profits from its core operations.
Similarly, the pretax margin moved from negative values in 2020 and 2021 to 28.18% in 2024, showcasing the company's effectiveness in controlling expenses and generating pre-tax profits.
Lastly, the net profit margin improved from negative values in 2020 and 2021 to 23.58% in 2024, indicating the company's ability to generate net income after accounting for all expenses, including interest and taxes.
Overall, the trend in profitability ratios for Alkermes Plc shows a positive trajectory from 2020 to 2024, reflecting operational improvements and a better financial performance.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 20.46% | 19.39% | -0.31% | -1.45% | -5.77% |
| Return on assets (ROA) | 17.86% | 16.65% | -8.06% | -2.38% | -5.69% |
| Return on total capital | 28.71% | 18.86% | -11.56% | -2.00% | -6.56% |
| Return on equity (ROE) | 25.06% | 29.58% | -15.16% | -4.33% | -10.39% |
Alkermes Plc's profitability ratios have exhibited a significant improvement in recent years.
- Operating return on assets (Operating ROA) saw a notable increase from -5.77% in December 2020 to 20.46% in December 2024, indicating the company's ability to generate operating profits from its assets.
- Return on assets (ROA) also showed a positive trend, rising from negative figures in 2020 and 2021 to 17.86% in December 2024. This suggests improved efficiency in generating profits relative to its total assets.
- Return on total capital experienced a turnaround, escalating from -11.56% in 2022 to 28.71% by December 2024, indicating effective capital utilization and higher overall returns.
- Return on equity (ROE) showcased a remarkable improvement, moving from negative percentages in 2020 and 2021 to 25.06% in December 2024, reflecting enhanced profitability for the company's shareholders compared to their equity investment.
Overall, Alkermes Plc's profitability ratios have demonstrated a positive trajectory, signifying improved operational efficiency, effective asset utilization, and enhanced returns for both capital providers and equity investors.