Alkermes Plc (ALKS)

Debt-to-equity 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-equity ratio		0.22	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

September 30, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $285,823K ÷ $1,292,110K
= 0.22

The debt-to-equity ratio of Alkermes Plc has shown relative stability over the past few years, fluctuating within a narrow range. The ratio has ranged from 0.21 to 0.29, indicating that the company has generally maintained a conservative capital structure with a low level of debt relative to equity.

The lower debt-to-equity ratios suggest that Alkermes relies more on equity financing rather than debt to fund its operations and growth. This may imply lower financial risk for the company as a lower debt level could reduce the interest burden and potential financial distress in case of economic downturns.

Overall, the consistent and moderate debt-to-equity ratios of Alkermes Plc reflect a prudent approach to managing its capital structure, striking a balance between leveraging debt for growth opportunities while maintaining financial stability.