Alkermes Plc (ALKS)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	367,070	333,346	288,723	434,430	355,757	214,724	102,992	-164,209	-158,267	-129,140	-94,154	-61,654	-48,169	-91,684	-62,830	-94,625	-110,861	-73,573	-126,317	-138,876
Total stockholders’ equity	US$ in thousands	1,464,980	1,292,110	1,284,000	1,254,760	1,202,690	1,355,580	1,280,440	1,005,580	1,043,750	1,042,850	1,082,320	1,075,390	1,112,580	1,096,170	1,097,900	1,051,160	1,066,980	1,084,360	1,061,850	1,063,020
ROE		25.06%	25.80%	22.49%	34.62%	29.58%	15.84%	8.04%	-16.33%	-15.16%	-12.38%	-8.70%	-5.73%	-4.33%	-8.36%	-5.72%	-9.00%	-10.39%	-6.78%	-11.90%	-13.06%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $367,070K ÷ $1,464,980K
= 25.06%

Alkermes Plc's Return on Equity (ROE) experienced a significant turnaround over the past quarters, showing a substantial improvement from negative values to positive values.

The ROE was negative in the first three quarters of 2020, indicating that the company's net income was not generating adequate returns in relation to shareholders' equity during that period. However, starting from the second quarter of 2023, the trend reversed, and a positive ROE was recorded.

The ROE improved gradually from 8.04% in the second quarter of 2023 to 25.06% by the end of December 2024. This positive trend is a favorable sign as it indicates that the company is efficiently utilizing its shareholders' equity to generate profit.

Overall, the positive ROE values in the latter periods demonstrate that Alkermes Plc has been effectively leveraging its equity to generate profits for its shareholders, marking a significant improvement in its financial performance.