Jazz Pharmaceuticals PLC (JAZZ)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	3,809,836	3,720,411	3,685,651	3,662,251	3,569,427	3,471,828	3,371,195	3,194,350	2,999,693	2,864,101	2,628,980	2,436,329	2,361,556	2,277,779	2,214,357	2,184,676	2,158,500	2,053,217	1,985,763	1,953,884
Property, plant and equipment	US$ in thousands	165,196	222,476	229,264	227,552	223,379	216,339	239,523	257,632	251,099	249,153	271,581	123,863	127,935	128,204	128,259	129,562	131,506	129,472	127,183	113,006
Fixed asset turnover		23.06	16.72	16.08	16.09	15.98	16.05	14.07	12.40	11.95	11.50	9.68	19.67	18.46	17.77	17.26	16.86	16.41	15.86	15.61	17.29

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,809,836K ÷ $165,196K
= 23.06

Fixed asset turnover is a key financial ratio that indicates how efficiently a company is utilizing its fixed assets to generate revenue. By analyzing the data provided for Jazz Pharmaceuticals plc over the past eight quarters, we observe fluctuations in the fixed asset turnover ratio.

In Q4 2023, Jazz Pharmaceuticals achieved a fixed asset turnover ratio of 22.60, indicating that the company generated $22.60 in revenue for every dollar invested in fixed assets during that quarter. This represents a significant increase compared to the previous quarter (Q3 2023), where the ratio stood at 17.06. The substantial jump in fixed asset turnover suggests improved efficiency in utilizing fixed assets to drive revenue growth.

Looking at the trend over the eight quarters, Jazz Pharmaceuticals has shown fluctuations in its fixed asset turnover ratio, with periods of both growth and decline. The company experienced a peak in Q4 2023, demonstrating a strong ability to generate revenue relative to its investment in fixed assets. However, it is important to note that fixed asset turnover ratios alone may not provide a complete picture, and further analysis of other financial metrics is recommended for a comprehensive assessment of the company's overall financial performance.