Alkermes Plc (ALKS)

Operating profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	414,122	-6,089	-29,287	-112,427	-175,479
Revenue	US$ in thousands	1,639,870	1,099,460	1,162,060	1,032,500	1,156,450
Operating profit margin		25.25%	-0.55%	-2.52%	-10.89%	-15.17%

December 31, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $414,122K ÷ $1,639,870K
= 25.25%

The operating profit margin of Alkermes plc has shown significant fluctuations over the past five years. In 2019, the company had a negative operating profit margin of -13.84%, indicating that its operating expenses exceeded its operating income.

However, in subsequent years, there was a notable improvement in the operating profit margin. By 2023, the operating profit margin had reached 24.90%, indicating that the company was able to significantly increase its operating income relative to its revenue. This improvement suggests that the company may have implemented cost-cutting measures, increased operational efficiency, or experienced higher revenue growth.

The negative operating profit margins in 2020 and 2022 indicate that the company faced challenges in those years, possibly due to higher operating expenses or lower revenue. The 2021 operating profit margin of -2.50% suggests some improvement compared to the previous years, but still indicates that the company was not able to generate a significant profit from its operations.

Overall, the trend in Alkermes plc's operating profit margin shows volatility and inconsistency, with a significant improvement in 2023 compared to the negative margins in earlier years. This variability underscores the importance of closely monitoring the company's cost structure and revenue generation strategies to ensure long-term profitability.