Alkermes Plc (ALKS)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.13 | 0.13 | 0.14 | 0.13 | 0.13 | 0.13 | 0.15 | 0.15 | 0.15 | 0.15 | 0.15 | 0.14 | 0.15 | 0.15 | 0.16 | 0.14 | 0.15 | 0.15 | 0.15 | 0.15 |
| Debt-to-capital ratio | 0.18 | 0.18 | 0.19 | 0.19 | 0.18 | 0.18 | 0.22 | 0.22 | 0.22 | 0.21 | 0.21 | 0.21 | 0.21 | 0.21 | 0.22 | 0.20 | 0.20 | 0.20 | 0.20 | 0.20 |
| 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 |
| 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 |
The solvency ratios of Alkermes Plc, as indicated by the debt-to-assets, debt-to-capital, debt-to-equity, and financial leverage ratios, demonstrate the company's ability to meet its financial obligations and support its operations without facing excessive financial risk.
The debt-to-assets ratio has remained relatively stable around 0.13 to 0.16 over the past few quarters, indicating that a moderate proportion of Alkermes' assets are financed by debt.
Similarly, the debt-to-capital ratio has also shown consistency within the range of 0.18 to 0.22, illustrating that debt represents a reasonable portion of the company's total capital structure.
The debt-to-equity ratio has fluctuated between 0.21 to 0.29, suggesting some variability in the reliance on debt compared to equity in financing the company's operations. However, the ratios generally remain within a manageable range.
The financial leverage ratio, with values ranging from 1.66 to 1.91, signifies the company's overall level of financial risk and the extent to which it is utilizing debt to fund its assets. The ratios indicate that Alkermes has maintained a moderate level of financial leverage, with fluctuations observed but generally remaining within acceptable boundaries.
Overall, based on these solvency ratios, Alkermes Plc appears to have a balanced capital structure with a reasonable mix of debt and equity, allowing the company to support its operations while managing financial risk effectively.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 12.50 | 10.36 | 15.79 | 12.21 | 11.00 | 6.33 | -9.65 | -11.83 | -12.62 | -9.94 | -5.84 | -2.50 | -6.60 | -4.22 | -7.58 | -10.15 | -4.75 | -8.82 | -8.89 | -13.49 |
The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt with its operating income. A higher ratio indicates a stronger ability to cover interest costs.
Analyzing Alkermes Plc's interest coverage over the past few quarters, we observe a fluctuating trend. The ratio has varied significantly, ranging from negative values to double-digit positive figures. It reached a peak of 15.79 in March 2024, indicating robust coverage of interest expenses. However, there were instances of negative ratios, such as -9.65 in March 2023, which suggests that the company's operating income was insufficient to cover its interest obligations during that period.
Overall, the interest coverage ratio for Alkermes Plc has displayed volatility and inconsistency over the periods analyzed. Investors and creditors may need to consider the varying levels of coverage when assessing the company's financial health and risk profile. It would be prudent to delve deeper into the company's financial performance and sustainability to understand the factors driving these fluctuations in interest coverage.