Alkermes Plc (ALKS)

Debt-to-equity 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-equity ratio		0.24	0.28	0.26	0.26	0.25

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $287,730K ÷ $1,202,690K
= 0.24

The debt-to-equity ratio of Alkermes plc has exhibited a relatively stable trend over the past five years, ranging from 0.24 to 0.28. This indicates that the company has been utilizing a conservative approach towards financing its operations, with a significant portion of its capital structure being funded by equity rather than debt.

The decreasing trend in the debt-to-equity ratio from 2022 to 2023 suggests a reduction in the proportion of debt relative to equity in the company's capital structure, which may signify a lower financial risk and improved financial stability. Alkermes plc's consistent maintenance of a moderate level of leverage indicates a prudent financial strategy that aims to balance the benefits of debt financing with the associated risks.

Overall, the stable and relatively low debt-to-equity ratio of Alkermes plc reflects a healthy financial position and a cautious approach towards managing its capital structure, which may provide resilience in the face of economic challenges and support future growth opportunities.