Jazz Pharmaceuticals PLC (JAZZ)

Inventory turnover

		Dec 31, 2024	Sep 30, 2024	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
Cost of revenue (ttm)	US$ in thousands	756,666	886,749	877,291	709,703	587,130	495,698	527,206	553,877	540,517	509,306	520,869	515,855	440,760	354,764	251,635	160,449	148,917	134,108	123,413	123,081
Inventory	US$ in thousands	480,445	539,302	542,555	577,321	597,039	611,827	657,214	674,778	714,061	728,074	861,705	985,454	1,072,720	1,137,850	1,251,260	115,475	95,396	91,404	92,534	85,610
Inventory turnover		1.57	1.64	1.62	1.23	0.98	0.81	0.80	0.82	0.76	0.70	0.60	0.52	0.41	0.31	0.20	1.39	1.56	1.47	1.33	1.44

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $756,666K ÷ $480,445K
= 1.57

Jazz Pharmaceuticals PLC's inventory turnover ratio has shown fluctuations over the given period. From March 31, 2020, to December 31, 2020, the ratio increased steadily from 1.44 to 1.56. However, in the following quarters of 2021 and 2022, there was a significant decline in inventory turnover, dropping to levels as low as 0.20 in June 30, 2021.

The trend reversed starting from March 31, 2023, where the inventory turnover ratio started to gradually increase again, reaching 1.23 by March 31, 2024. This indicates that the company may have managed its inventory more efficiently during this later period.

Overall, Jazz Pharmaceuticals PLC's inventory turnover ratio has shown variability, with some periods of low turnover potentially indicating challenges in managing inventory levels efficiently. The recent uptrend in the ratio suggests improvements in managing inventory or changing business dynamics affecting inventory turnover positively. However, a closer examination of the reasons behind these fluctuations would provide deeper insights into the company's inventory management practices.