Alkermes Plc (ALKS)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	287,730	290,270	292,804	272,118	274,295
Total assets	US$ in thousands	2,136,220	1,963,980	2,024,480	1,949,730	1,805,400
Debt-to-assets ratio		0.13	0.15	0.14	0.14	0.15

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $287,730K ÷ $2,136,220K
= 0.13

The debt-to-assets ratio of Alkermes plc has been relatively stable over the past five years, ranging from 0.14 to 0.15. This ratio indicates the proportion of the company's assets financed by debt. A lower ratio suggests a lower level of financial risk as the company relies less on debt to fund its operations and investments.

In the case of Alkermes plc, the decreasing trend in the debt-to-assets ratio from 0.15 in 2022 to 0.14 in 2023 indicates that the company has slightly reduced its reliance on debt to finance its assets. This could be seen as a positive sign of improved financial stability and efficient asset management. However, it is important to consider other financial metrics and qualitative factors to gain a more comprehensive understanding of the company's overall financial health and risk profile.