Alkermes Plc (ALKS)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	367,070	355,757	-158,267	-48,169	-110,861
Total assets	US$ in thousands	2,055,570	2,136,220	1,963,980	2,024,480	1,949,730
ROA		17.86%	16.65%	-8.06%	-2.38%	-5.69%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $367,070K ÷ $2,055,570K
= 17.86%

Based on the provided data, the return on assets (ROA) for Alkermes Plc has shown fluctuations over the years.

- As of December 31, 2020, the ROA was -5.69%, indicating that the company's net income generated from its assets was negative, possibly due to inefficiencies in asset utilization or high expenses relative to income.

- By December 31, 2021, the ROA improved to -2.38%, signaling a slight enhancement in the company's ability to generate returns from its assets compared to the previous year.

- However, by December 31, 2022, the ROA declined significantly to -8.06%, suggesting a deterioration in the company's profitability relative to its assets, which could be attributed to various factors such as increased costs or reduced revenues.

- The trend reversed in the following years, with the ROA increasing notably to 16.65% as of December 31, 2023, and further improving to 17.86% by December 31, 2024. These positive ROA figures indicate that Alkermes Plc has significantly enhanced its ability to generate returns from its assets, reflecting improved profitability and potentially more efficient asset management.

Overall, the increasing trend in ROA from 2022 to 2024 suggests that the company has been successful in enhancing its asset utilization and profitability, which could be seen as a positive indicator of financial performance and efficiency in resource management.