C

Alkermes plc — Earnings Quality Grade C

ALKS · Healthcare

Some red flags

Revenue
$1.5B
2025
Net Income
$242M
2025
Gross Margin
86.7%
Free Cash Flow
$480M
01

Screening Summary

14
Passed
2
Watch
1
Failed
-3.31
M-Score

Management Signals

No recent CEO, CFO, board, or accounting leadership signals found in SEC 8-K filings.
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO 66 days, change -7 days YoY

A2AR vs Revenue Growth

AR growth -14.8% vs revenue growth -5.2%

A3Revenue vs CFFO

Revenue -5.2%, CFFO 18.6%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

Inventory growth 7.5% far exceeds COGS -19.9%, margin rising. Fraud signal

!
B2CapEx vs Revenue

CapEx growth 20.7% is >2x revenue growth -5.2%

B3SG&A Ratio

SG&A/Gross Profit = 54.8%. Normal

B4Gross Margin

Gross margin 86.7%, change +2.4pp. Stable

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 2.15. Profits backed by cash

C2Free Cash Flow

FCF $0.5B, FCF/NI = 1.99

C3Accruals Ratio

Accruals ratio = -11.2%. Low accruals

C4Cash vs Debt

Cash $0.6B covers debt $0.1B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $0.1B = 5% of equity. Manageable

D2Leverage

Debt/EBITDA = 0.2x. Healthy

!
D3Soft Asset Growth

Other assets grew 197.5% vs revenue -5.2%

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

Goodwill+Intangibles change -0% YoY. Normal

06

Manipulation Score

F1Beneish M-Score

M-Score = -3.31 (< -2.22). Unlikely manipulator

Portfolio monitoring

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04

Beneish M-Score

Manipulation Probability-3.31
-4.0 Clean-2.22 Grey-1.78 Danger0
0.899
DSRI
AR growing faster than revenue?
0.972
GMI
Gross margin declining?
0.652
AQI
Asset quality deteriorating?
0.948
SGI
Revenue growth rate
1.006
DEPI
Depreciation slowing?
1.147
SGAI
SG&A ratio changing?
-0.1122
TATA
Accruals level
0.966
LVGI
Leverage increasing?
05

Altman Z-Score

6.37
Safe Zone
0 Distress1.102.605.0+ Safe
0.5572
Liquidity
-0.2955
Cumulative profit
0.1221
Operating efficiency
2.7247
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25