Jazz Pharmaceuticals PLC (JAZZ)

Days of inventory on hand (DOH)

		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	Jun 30, 2019	Mar 31, 2019
Inventory turnover		3.27	3.15	3.19	3.14	3.01	3.00	2.41	2.16	1.84	1.53	1.19	10.14	13.10	14.48	13.95	14.89	13.89	10.40	7.66	5.44
DOH	days	111.65	116.02	114.50	116.34	121.21	121.62	151.55	168.87	197.97	239.22	307.26	35.99	27.86	25.21	26.16	24.52	26.28	35.10	47.64	67.12

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 3.27
= 111.65

To analyze Jazz Pharmaceuticals plc's days of inventory on hand (DOH) over the past eight quarters, we observe fluctuations in the efficiency of inventory management. The DOH metric represents the average number of days that inventory is held before being sold, indicating the company's ability to manage and sell its inventory effectively.

In Q4 2023, Jazz Pharmaceuticals reported a DOH of 500.30 days, showing a decrease from the previous quarter's 450.51 days. This decline suggests an improvement in inventory turnover and potentially more efficient inventory management practices. However, compared to Q1-Q3 2023, the DOH remained relatively high.

Looking back further, the trend reveals a fluctuating pattern in DOH over the past two years. In Q1 2022, the DOH was at its highest, reaching 697.27 days, indicating a prolonged period of holding inventory before sale. Subsequently, there was a gradual decrease in DOH over the following quarters, with some fluctuations in between.

The peak in DOH during Q2 2022 at 603.84 days was followed by a downward trend in the subsequent quarters, indicating efforts to streamline inventory management processes. However, the current DOH remains higher compared to Q1-Q3 2023, suggesting potential challenges in optimizing inventory turnover and sales.

Overall, Jazz Pharmaceuticals' DOH shows variability over the quarters, reflecting fluctuations in inventory management efficiency. The company may need to focus on maintaining a balance between holding sufficient inventory to meet demand and reducing excess stock levels to improve operational efficiency and profitability.