Alkermes Plc (ALKS)

Operating profit margin

		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
Operating income (ttm)	US$ in thousands	436,523	420,961	592,347	538,066	338,909	189,074	-126,652	-142,265	-119,300	-78,318	-39,440	-29,287	-62,399	-53,407	-91,489	-112,427	-91,632	-134,586	-136,848	-175,479
Revenue (ttm)	US$ in thousands	1,492,589	1,489,378	1,701,960	1,639,873	1,569,557	1,443,430	1,105,567	1,099,455	1,120,608	1,163,507	1,190,967	1,162,061	1,120,829	1,092,326	1,036,423	1,032,497	1,160,605	1,149,262	1,180,207	1,156,446
Operating profit margin		29.25%	28.26%	34.80%	32.81%	21.59%	13.10%	-11.46%	-12.94%	-10.65%	-6.73%	-3.31%	-2.52%	-5.57%	-4.89%	-8.83%	-10.89%	-7.90%	-11.71%	-11.60%	-15.17%

September 30, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $436,523K ÷ $1,492,589K
= 29.25%

The operating profit margin of Alkermes Plc has shown fluctuations over the past several quarters, ranging from negative figures to positive percentages. Specifically, the operating profit margin has improved significantly in the recent quarters, with a notable peak of 34.80% in March 2024. This increase indicates that the company has been able to effectively control its operating expenses and generate higher profits relative to its revenue during this period.

However, prior to this improvement, the operating profit margins were largely negative, indicating challenges in managing costs and generating profits. The negative margins in the previous quarters suggest that the company may have faced difficulties in controlling its operating expenses or experienced a decline in revenue relative to costs.

Overall, the positive trend in operating profit margin in the most recent quarters is a positive signal for Alkermes Plc's financial performance, indicating potential improvements in efficiency and profitability. It will be important for the company to sustain and further enhance this positive trend to ensure long-term financial stability and growth.