Alkermes Plc (ALKS)

Return on equity (ROE)

		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	Dec 31, 2019	Sep 30, 2019
Net income (ttm)	US$ in thousands	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	-196,620	-200,979
Total stockholders’ equity	US$ in thousands	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	1,085,440	1,068,180
ROE		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%	-18.11%	-18.82%

June 30, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $288,723K ÷ $1,284,000K
= 22.49%

The return on equity (ROE) of Alkermes Plc has shown fluctuating performance over the past several quarters. In the latest quarter, as of June 30, 2024, the ROE stood at 22.49%, indicating a healthy return generated for shareholders relative to the equity invested in the company.

Comparing this to previous quarters, we see a significant improvement in ROE from the previous quarter's 15.84% to the most recent values. The March 31, 2024, and Dec 31, 2023 quarters also exhibited strong ROE figures of 34.62% and 29.58%, respectively. These elevated levels suggest efficient utilization of shareholder funds to generate profits during these periods.

However, the trend was not consistently positive in earlier quarters, with ROE figures dipping into negative territory in some cases. For example, ROE was negative in the March 31, 2023, quarter at -16.33%, indicating that the company's net income was not sufficient to cover the equity investment at that time.

Overall, the recent uptick in ROE for Alkermes Plc is a positive sign for the company's financial performance and suggests improved profitability and efficient use of shareholders' funds. Management should continue to monitor and sustain this trend to enhance shareholder value over the long term.