Alkermes Plc (ALKS)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,155,290 | 2,206,840 | 2,123,900 | 2,136,220 | 2,279,230 | 2,187,180 | 1,922,730 | 1,963,980 | 1,941,900 | 1,957,420 | 1,977,840 | 2,024,480 | 1,995,430 | 1,937,570 | 1,878,220 | 1,949,730 | 1,876,820 | 1,802,340 | 1,825,950 | 1,805,400 |
| 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 |
| Financial leverage ratio | 1.67 | 1.72 | 1.69 | 1.78 | 1.68 | 1.71 | 1.91 | 1.88 | 1.86 | 1.81 | 1.84 | 1.82 | 1.82 | 1.76 | 1.79 | 1.83 | 1.73 | 1.70 | 1.72 | 1.66 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,155,290K ÷ $1,292,110K
= 1.67
The financial leverage ratio for Alkermes Plc has fluctuated over the past few years, ranging from 1.66 to 1.91. The ratio measures the extent to which the company relies on debt to fund its operations and growth. A higher financial leverage ratio indicates a higher level of debt relative to equity, which can increase financial risk but also potentially amplify returns.
In the most recent period, the financial leverage ratio was 1.67, indicating that for every $1 of equity, the company had $1.67 of debt. This suggests a moderate level of financial leverage, balancing the benefits of using debt to potentially enhance returns with the associated risks.
The trend in the financial leverage ratio over the past quarters shows some volatility but generally fluctuating within a relatively narrow range. It is important for investors and analysts to monitor the financial leverage ratio over time to assess the company's ability to manage its debt levels effectively and maintain a strong financial position.
Peer comparison
Sep 30, 2024