Alkermes Plc (ALKS)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 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 | 0.16 |
| Debt-to-capital ratio | 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 | 0.20 |
| Debt-to-equity ratio | 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 | 0.26 |
| 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 |
The solvency ratios of Alkermes Plc over the past few quarters show a relatively stable trend. The debt-to-assets ratio has fluctuated between 0.13 and 0.16, indicating that the company has maintained a conservative level of debt relative to its total assets.
Similarly, the debt-to-capital and debt-to-equity ratios have also exhibited consistency, with values ranging between 0.18 to 0.22 and 0.21 to 0.29, respectively. These ratios suggest that Alkermes Plc relies moderately on debt financing in relation to its capital structure and equity base.
The financial leverage ratio, reflecting the extent to which the company is using debt to fund its operations, has remained relatively constant around 1.7 to 1.9. This signifies that the company has been operating with a sustainable level of leverage, neither excessively high nor too low.
Overall, the solvency ratios of Alkermes Plc indicate a prudent approach to managing its debt and capital structure, maintaining a balanced mix of debt and equity to support its operations and growth initiatives.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 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 | -13.13 |
Interest coverage is a financial metric that indicates a company's ability to meet its interest obligations on outstanding debt. A higher interest coverage ratio indicates that the company is more capable of servicing its debt. Analyzing the interest coverage ratio of Alkermes Plc over the past 20 quarters reveals fluctuations in the company's ability to cover its interest expenses.
Looking at the trend in Alkermes Plc's interest coverage ratio from December 2019 to June 2024, we observe some variability. The company had a high interest coverage ratio in March 2020, indicating strong earnings relative to its interest expenses. However, the ratio dipped significantly in the subsequent quarters, reaching negative values in the first half of 2023. A negative interest coverage ratio implies that the company's operating profit was insufficient to cover its interest expenses during those periods.
Subsequently, Alkermes Plc managed to improve its interest coverage, with positive ratios in the last few quarters. The interest coverage ratios for March 2024 and June 2024 were notably higher than the historical average, indicating an improvement in the company's ability to handle its interest obligations.
Overall, the fluctuating nature of Alkermes Plc's interest coverage ratio suggests varying levels of financial health and profitability over the analyzed period. Investors and stakeholders should continue to monitor the company's interest coverage ratio to assess its financial stability and debt servicing capabilities.