Alkermes Plc (ALKS)

Financial leverage 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
Total assets	US$ in thousands	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	1,758,000
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
Financial leverage ratio		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	1.65

June 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,206,840K ÷ $1,284,000K
= 1.72

The financial leverage ratio of Alkermes Plc has shown fluctuations over the past few quarters, ranging from 1.65 to 1.91. The ratio measures the company's level of debt in relation to its equity. A higher financial leverage ratio indicates that the company relies more on debt financing rather than equity.

In the recent quarters, the financial leverage ratio has been hovering around the mid to high 1.7s and 1.8s, suggesting that the company has a moderate level of leverage in its capital structure. This indicates that Alkermes has a significant amount of debt compared to its equity, which can amplify returns in good times but also increase risks in challenging economic environments.

Overall, monitoring the financial leverage ratio is crucial as it provides insights into the company's debt levels and financial risk. Alkermes Plc's management should continue to keep a close eye on this ratio to ensure a healthy balance between debt and equity financing.