Alkermes Plc (ALKS)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	2,136,220	1,963,980	2,024,480	1,949,730	1,805,400
Total stockholders’ equity	US$ in thousands	1,202,690	1,043,750	1,112,580	1,066,980	1,085,440
Financial leverage ratio		1.78	1.88	1.82	1.83	1.66

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,136,220K ÷ $1,202,690K
= 1.78

The financial leverage ratio of Alkermes plc has fluctuated over the past five years, ranging from 1.66 in 2019 to 1.88 in 2022. A higher financial leverage ratio indicates a higher level of financial risk due to a greater reliance on debt financing. The decrease in the ratio from 2022 to 2023 suggests that the company may have reduced its debt relative to its equity, which could lead to lower interest expenses and potentially less financial risk. However, the ratio of 1.78 in 2023 still indicates a moderate level of leverage, which should be monitored closely to ensure the company maintains a healthy balance between debt and equity financing. Overall, the trend in the financial leverage ratio for Alkermes plc indicates a need for continued vigilance in managing its capital structure and financial risks.