Alkermes Plc (ALKS)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 437,585 | 299,811 | 248,422 | 374,488 | 281,151 | 239,318 | 122,135 | -154,183 | -154,264 | -134,713 | -94,995 | -56,052 | -28,087 | -70,496 | -42,395 | -74,093 | -87,878 | -47,462 | -101,941 | -115,171 |
| Long-term debt | US$ in thousands | — | 285,823 | 286,459 | 287,095 | 287,730 | 288,366 | 289,001 | 289,635 | 290,270 | 290,904 | 291,537 | 292,171 | 292,804 | 293,437 | 294,070 | 294,702 | 272,118 | 272,663 | 273,207 | 273,751 |
| 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 |
| Return on total capital | 29.87% | 19.00% | 15.82% | 24.29% | 18.86% | 14.56% | 7.78% | -11.90% | -11.56% | -10.10% | -6.91% | -4.10% | -2.00% | -5.07% | -3.05% | -5.51% | -6.56% | -3.50% | -7.64% | -8.62% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $437,585K ÷ ($—K + $1,464,980K)
= 29.87%
The return on total capital for Alkermes Plc has shown a fluctuating trend over the observed period, ranging from negative values to positive percentages. The company experienced negative returns in the range of -11.90% to -2.00% between March 31, 2022, and December 31, 2022. However, there was a significant turnaround in the following periods, with the return on total capital increasing to 29.87% by December 31, 2024.
This improvement indicates that Alkermes Plc has been able to generate more favorable returns on the total capital employed in its operations. It is essential to monitor this metric over time to assess the company's efficiency in utilizing its capital resources to create value for its shareholders. The increasing trend in the return on total capital is a positive sign of improved financial performance and management effectiveness.
Peer comparison
Dec 31, 2024