Alkermes Plc (ALKS)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	1,202,690	1,043,750	1,112,580	1,066,980	1,085,440
ROE		29.58%	-15.16%	-4.33%	-10.39%	-18.11%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $355,757K ÷ $1,202,690K
= 29.58%

Alkermes plc's return on equity (ROE) has shown significant improvement over the past five years. In 2023, the company achieved an ROE of 29.58%, representing a notable increase from the negative ROE figures recorded in the previous years. The negative ROE values in 2022, 2021, 2020, and 2019 (-15.16%, -4.33%, -10.39%, and -18.11% respectively) indicated that the company was not effectively utilizing shareholder equity to generate profits during those periods.

The positive ROE in 2023 suggests that Alkermes plc has enhanced its ability to generate profits from the shareholders' investments. This improvement could be attributed to various factors such as better operational efficiency, cost management, revenue growth, or strategic initiatives implemented by the company. Investors and stakeholders may view this positive trend in ROE as a positive sign of the company's financial performance and potential for future growth and profitability. It is essential for the company to sustain this positive trajectory in ROE to create long-term value for its shareholders.