Alkermes Plc (ALKS)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 420,636 | 281,151 | -154,264 | -28,087 | -87,878 |
| Long-term debt | US$ in thousands | — | 287,730 | 290,270 | 292,804 | 272,118 |
| Total stockholders’ equity | US$ in thousands | 1,464,980 | 1,202,690 | 1,043,750 | 1,112,580 | 1,066,980 |
| Return on total capital | 28.71% | 18.86% | -11.56% | -2.00% | -6.56% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $420,636K ÷ ($—K + $1,464,980K)
= 28.71%
To analyze Alkermes Plc's return on total capital based on the provided data:
1. The return on total capital for Alkermes Plc has fluctuated over the years. It was negative in December 2020 at -6.56%, improving slightly to -2.00% by December 2021.
2. However, there was a significant decline in return on total capital to -11.56% by December 2022, indicating potential inefficiencies in capital utilization during that period.
3. The company's performance rebounded strongly in December 2023, with a notable increase in return on total capital to 18.86%. This suggests improved operational efficiency and profitability compared to previous years.
4. Alkermes Plc's return on total capital further improved to 28.71% by December 2024, indicating a substantial enhancement in the company's ability to generate profits relative to its total capital employed.
5. Overall, the positive trend in return on total capital from 2022 to 2024 reflects potential enhancements in financial performance and capital efficiency for Alkermes Plc, which may indicate a positive outlook for the company's future operations.
Peer comparison
Dec 31, 2024