Alkermes Plc (ALKS)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 420,636 | 414,122 | -6,089 | -29,287 | -112,427 |
| Total assets | US$ in thousands | 2,055,570 | 2,136,220 | 1,963,980 | 2,024,480 | 1,949,730 |
| Operating ROA | 20.46% | 19.39% | -0.31% | -1.45% | -5.77% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $420,636K ÷ $2,055,570K
= 20.46%
Operating ROA for Alkermes Plc saw a significant improvement from -5.77% in 2020 to 20.46% in 2024. The company's performance in utilizing its assets to generate operating profit has been inconsistent over the years. Following a period of negative returns, the company managed to turn the trend around and achieve strong profitability in 2023 and 2024. This improvement indicates that Alkermes Plc has been able to enhance its operational efficiency and generate higher returns from its asset base. However, the negative values in the earlier years highlight potential challenges faced by the company in efficiently utilizing its assets to drive profitability.
Peer comparison
Dec 31, 2024