Alkermes Plc (ALKS)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,464,980 | 1,202,690 | 1,043,750 | 1,112,580 | 1,066,980 |
| ROE | 25.06% | 29.58% | -15.16% | -4.33% | -10.39% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $367,070K ÷ $1,464,980K
= 25.06%
The return on equity (ROE) for Alkermes Plc has shown varying trends over the past five years.
As of December 31, 2020, the ROE was at a negative 10.39%, indicating that the company was generating a loss relative to the shareholders' equity invested. This negative ROE improved slightly by December 31, 2021, to reach a negative 4.33%.
However, in the subsequent years, there was a significant decline in the ROE. By December 31, 2022, the ROE deteriorated further to a negative 15.16%, suggesting continued challenges in generating profits relative to the shareholders' equity.
The trend reversed positively in the following years. By December 31, 2023, the ROE improved substantially to a positive 29.58%, indicating a strong performance in generating profits relative to the shareholders' equity. This positive momentum continued into December 31, 2024, with an ROE of 25.06%.
Overall, the return on equity for Alkermes Plc has shown volatility over the past five years, with significant fluctuations between negative and positive values. It is important for investors and stakeholders to monitor this metric closely to assess the company's profitability and efficiency in utilizing shareholder funds.
Peer comparison
Dec 31, 2024