Alkermes Plc (ALKS)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,055,570 | 2,136,220 | 1,963,980 | 2,024,480 | 1,949,730 |
| Total stockholders’ equity | US$ in thousands | 1,464,980 | 1,202,690 | 1,043,750 | 1,112,580 | 1,066,980 |
| Financial leverage ratio | 1.40 | 1.78 | 1.88 | 1.82 | 1.83 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,055,570K ÷ $1,464,980K
= 1.40
The financial leverage ratio for Alkermes Plc has shown a relatively stable trend over the past five years. It decreased from 1.83 in December 2020 to 1.40 in December 2024.
A financial leverage ratio of 1 indicates an equal amount of debt and equity, while a ratio above 1 signifies higher reliance on debt financing. In Alkermes Plc's case, the ratio has been consistently above 1, indicating a higher proportion of debt compared to equity in its capital structure.
The decrease in the financial leverage ratio from 2020 to 2024 suggests that Alkermes Plc may have reduced its reliance on debt financing or increased its equity component during this period. A lower financial leverage ratio generally indicates a stronger financial position and lower financial risk for the company.
It would be prudent for stakeholders to monitor Alkermes Plc's financial leverage ratio over time to assess the company's leverage position and its ability to meet debt obligations effectively.
Peer comparison
Dec 31, 2024