Alkermes Plc (ALKS)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 420,636 | 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 |
| Total assets | US$ in thousands | 2,055,570 | 2,155,290 | 2,206,840 | 2,123,900 | 2,136,220 | 2,279,230 | 2,187,180 | 1,922,730 | 1,963,980 | 1,941,900 | 1,957,420 | 1,977,840 | 2,024,480 | 1,995,430 | 1,937,570 | 1,878,220 | 1,949,730 | 1,876,820 | 1,802,340 | 1,825,950 |
| Operating ROA | 20.46% | 20.25% | 19.08% | 27.89% | 25.19% | 14.87% | 8.64% | -6.59% | -7.24% | -6.14% | -4.00% | -1.99% | -1.45% | -3.13% | -2.76% | -4.87% | -5.77% | -4.88% | -7.47% | -7.49% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $420,636K ÷ $2,055,570K
= 20.46%
Operating ROA is a key financial metric that indicates how efficiently a company generates profits from its assets utilized in operations. For Alkermes Plc, the trend in operating ROA has shown significant fluctuations over the past few years.
From March 2020 to December 2022, the company experienced negative operating ROA figures, indicating that its operating profits were insufficient to cover the assets employed in its operations during this period. This negative trend could suggest inefficiencies in the company's operations or challenges in generating profits relative to the assets deployed.
However, starting from March 2023, there has been a notable turnaround in Alkermes Plc's performance, with operating ROA turning positive and showing consistent improvement. The company saw a substantial increase in operating ROA from March 2023 to December 2024, reaching a peak of 27.89% by March 2024. This improvement signals that the company has been able to enhance its operational efficiency and profitability relative to its assets.
Overall, the recent positive trend in operating ROA for Alkermes Plc indicates a strengthening financial performance and efficient utilization of assets in generating operating profits. It will be essential for stakeholders to monitor this metric in subsequent periods to assess the company's continued operational performance and profitability.
Peer comparison
Dec 31, 2024