Alkermes Plc (ALKS)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 355,757 | -158,267 | -48,169 | -110,861 | -196,620 |
| Total assets | US$ in thousands | 2,136,220 | 1,963,980 | 2,024,480 | 1,949,730 | 1,805,400 |
| ROA | 16.65% | -8.06% | -2.38% | -5.69% | -10.89% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $355,757K ÷ $2,136,220K
= 16.65%
The return on assets (ROA) of Alkermes plc has shown a notable improvement, increasing from a negative figure in the previous year to a positive 16.65% as of December 31, 2023. This significant improvement indicates that the company has become more efficient in generating profits from its assets compared to prior years.
The improvement in ROA suggests that Alkermes plc has been able to effectively utilize its assets to generate higher returns for its shareholders. This could be attributed to improved operational efficiency, better asset management practices, or strategic decision-making by the management team.
The positive ROA of 16.65% in 2023 reflects favorably on the company's financial performance and indicates that it is on a path towards sustainable profitability. However, it is important for investors and stakeholders to monitor future ROA trends to ensure continued effective asset utilization by Alkermes plc.
Peer comparison
Dec 31, 2023