Alkermes Plc (ALKS)

Debt-to-equity ratio

		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	Sep 30, 2019
Long-term debt	US$ in thousands	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	274,838
Total stockholders’ equity	US$ in thousands	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	1,068,180
Debt-to-equity ratio		0.22	0.23	0.24	0.21	0.23	0.29	0.28	0.28	0.27	0.27	0.26	0.27	0.27	0.28	0.26	0.25	0.26	0.26	0.25	0.26

June 30, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $286,459K ÷ $1,284,000K
= 0.22

The debt-to-equity ratio of Alkermes Plc has fluctuated over the past few quarters, ranging from 0.21 to 0.29. This ratio measures the proportion of debt financing relative to equity financing in the company's capital structure.

Based on the data provided, the company's debt levels in relation to equity have generally been moderate, indicating a balanced capital structure. A decreasing trend in the ratio over time may suggest that the company is gradually reducing its reliance on debt to fund its operations. On the other hand, an increasing trend may indicate a shift towards more aggressive leveraging.

It is important to note that a lower debt-to-equity ratio is generally considered favorable as it signifies lower financial risk and greater financial stability. However, the optimal debt-to-equity ratio can vary across industries and companies, depending on their specific circumstances and growth strategies.

Overall, a close monitoring of Alkermes Plc's debt-to-equity ratio is essential to assess its financial leverage and risk profile, in conjunction with other financial metrics and market factors impacting the company's performance and growth prospects.