Jazz Pharmaceuticals PLC (JAZZ)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	445,713	435,577	540,517	440,760	148,917
Inventory	US$ in thousands	480,445	597,039	714,061	1,072,720	95,396
Inventory turnover		0.93	0.73	0.76	0.41	1.56

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $445,713K ÷ $480,445K
= 0.93

Jazz Pharmaceuticals PLC's inventory turnover has experienced fluctuations over the past five years. In December 2020, the inventory turnover stood at 1.56, indicating that the company had turned over its inventory 1.56 times during that year. However, in the subsequent years, there was a significant decrease in inventory turnover. This downward trend continued in December 2021 when the turnover dropped to 0.41, signifying a considerable decrease in the efficiency of managing inventory.

By December 2022, there was a slight improvement with the inventory turnover increasing to 0.76 and further to 0.73 by December 2023. Although the turnover improved marginally in these years, it remained below the initial level observed in December 2020. In December 2024, the inventory turnover inched up to 0.93, indicating a further improvement in the management of inventory but still below the initial level.

The declining trend in inventory turnover from 2020 to 2021 followed by some recovery in the subsequent years suggests that Jazz Pharmaceuticals PLC may have faced challenges in efficiently managing its inventory initially but has made some progress in addressing these issues. Further monitoring and improvements in inventory management practices may be necessary to enhance operational efficiency and financial performance in the future.