Alkermes Plc (ALKS)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	1,202,690	1,043,750	1,112,580	1,066,980	1,085,440
Debt-to-capital ratio		0.19	0.22	0.21	0.20	0.20

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $287,730K ÷ ($287,730K + $1,202,690K)
= 0.19

The debt-to-capital ratio for Alkermes plc has shown a fluctuating trend over the past five years. In 2023, the ratio stands at 0.19, indicating that debt accounts for 19% of the company's capital structure. This represents a decrease from the previous year, where the ratio was 0.22.

Although the ratio has varied slightly year over year, it has generally remained within a relatively stable range between 0.19 and 0.22 since 2019. This suggests that Alkermes plc has maintained a conservative approach to financing its operations through a mix of debt and equity.

A lower debt-to-capital ratio typically signifies lower financial risk and greater financial stability for the company. In the case of Alkermes plc, the decreasing trend in the ratio may indicate a reduction in the proportion of debt used to fund its operations relative to equity, which can be viewed positively by investors and creditors. Monitoring this ratio over time can provide insights into the company's capital structure management and financial health.