Alkermes Plc (ALKS)

Debt-to-capital ratio

		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
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
Debt-to-capital ratio		0.18	0.18	0.19	0.19	0.18	0.18	0.22	0.22	0.22	0.21	0.21	0.21	0.21	0.21	0.22	0.20	0.20	0.20	0.20	0.20

September 30, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $285,823K ÷ ($285,823K + $1,292,110K)
= 0.18

The debt-to-capital ratio of Alkermes Plc has been relatively stable over the past few quarters, ranging between 0.18 and 0.22. This ratio indicates the proportion of a company's total capital that is financed by debt. A lower ratio suggests a lower level of financial risk as it signifies a lower reliance on debt to fund operations and growth.

The slight fluctuations in the debt-to-capital ratio of Alkermes Plc suggest that the company has been managing its debt levels effectively. Consistency in this ratio can provide insights into the company's financial stability and its ability to meet its long-term obligations.

Overall, with a debt-to-capital ratio ranging between 0.18 and 0.22, Alkermes Plc appears to have a moderate level of debt relative to its total capital, indicating a balanced capital structure.