Alkermes Plc (ALKS)
Return on total capital
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | -183,455 |
| 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 | 274,295 |
| Total stockholders’ equity | US$ in thousands | 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 | 1,085,440 |
| Return on total capital | 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% | -13.49% |
September 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $299,811K ÷ ($285,823K + $1,292,110K)
= 19.00%
The return on total capital for Alkermes Plc has shown significant fluctuations over the past several quarters. The trend indicates that the company's ability to generate profits relative to its total capital employed has varied considerably.
In the most recent quarter, ending September 30, 2024, the return on total capital was 19.00%, demonstrating a strong performance in utilizing its capital effectively to generate returns. This represents an improvement compared to the previous quarter's return of 15.82% as of June 30, 2024.
Looking further back, the return on total capital fluctuated with both positive and negative returns. The company reported a notably high return of 24.29% as of March 31, 2024, followed by a moderate return of 18.86% as of December 31, 2023. However, there were periods of lower returns, such as negative returns reported in earlier quarters.
The negative returns reported in March 31, 2023, to December 31, 2021, indicate that during these periods, the company may have struggled to generate profits in relation to its total capital, potentially due to various factors impacting its operational performance.
Overall, the analysis of Alkermes Plc's return on total capital highlights the importance of monitoring and evaluating the company's efficiency in generating returns from the capital invested, as it can provide insights into the effectiveness of its capital allocation and operational performance.
Peer comparison
Sep 30, 2024