Alkermes Plc (ALKS)

Net profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	355,757	-158,267	-48,169	-110,861	-196,620
Revenue	US$ in thousands	1,639,870	1,099,460	1,162,060	1,032,500	1,156,450
Net profit margin		21.69%	-14.39%	-4.15%	-10.74%	-17.00%

December 31, 2023 calculation

Net profit margin = Net income ÷ Revenue
= $355,757K ÷ $1,639,870K
= 21.69%

The net profit margin of Alkermes plc has shown significant fluctuations over the past five years, ranging from negative figures to positive percentages. In 2023, the net profit margin improved to a healthy 21.39%, indicating the company's ability to generate considerable profits relative to its revenue. This may suggest successful cost management strategies, revenue growth, or efficiency improvements.

The negative net profit margins recorded in 2020, 2021, and 2022 reflect periods where the company's expenses exceeded its earnings, resulting in losses. These outcomes could be attributed to various factors such as increased operating costs, impairment charges, or economic challenges affecting the pharmaceutical industry during those years.

The negative margins in 2019 and 2020 could be concerning, indicating that the company faced profitability challenges during those years. However, the positive turnaround in 2023 indicates a possible improvement in operational efficiency and financial performance.

Overall, the recent positive net profit margin of Alkermes plc in 2023 demonstrates a strong performance in terms of profitability, potentially reflecting strategic decisions and operational improvements. Investors and stakeholders may find this positive trend encouraging, although it is important to monitor future financial results to assess the company's continued financial health and sustainable profitability.