Alkermes Plc (ALKS)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	2,136,220	1,963,980	2,024,480	1,949,730	1,805,400
Operating ROA		19.39%	-0.31%	-1.45%	-5.77%	-9.72%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $414,122K ÷ $2,136,220K
= 19.39%

Alkermes plc's operating return on assets (operating ROA) has experienced significant fluctuations over the past five years. In 2023, the operating ROA improved to 19.39%, a positive shift from the negative figures seen in the preceding years.

The negative operating ROA figures in 2020, 2021, and 2022 (-5.77%, -1.45%, and -7.24% respectively) indicate that the company was not generating sufficient operating income from its assets during those periods. This could be a signal of inefficiencies in the company's operations or challenges in generating profits from its assets.

The improvement in operating ROA in 2023 to 19.39% suggests that Alkermes plc may have made significant operational improvements or strategic changes that have positively impacted its ability to generate operating income from its assets. This could be attributed to better cost management, revenue growth, or efficient asset utilization.

Overall, the trend in operating ROA for Alkermes plc indicates varying levels of effectiveness in utilizing its assets to generate operating income. The company's management should continue to monitor and improve this ratio to ensure sustainable profitability and efficiency in its operations.