Jazz Pharmaceuticals PLC (JAZZ)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	1,951,870	1,924,864	2,095,029	2,117,052	2,150,256	2,185,072	2,075,393	2,129,983	1,977,776	1,736,145	1,486,405	1,171,266	1,249,952	1,323,470	1,291,100	1,274,310	1,091,756	739,451	528,632	330,140
Inventory	US$ in thousands	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	78,608	71,108	68,999	60,707
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

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,951,870K ÷ $597,039K
= 3.27

Jazz Pharmaceuticals plc's inventory turnover for the past eight quarters has shown some fluctuations but generally indicates that the company is taking longer to sell through its inventory. The inventory turnover ratio has ranged from a low of 0.52 in Q1 2022 to a high of 0.82 in Q1 2023.

A lower inventory turnover ratio may suggest inefficient inventory management or overstocking, potentially leading to higher storage and holding costs. Conversely, a higher ratio indicates that the company is selling its inventory more quickly.

Although Jazz Pharmaceuticals plc's inventory turnover has been relatively stable around the 0.70-0.80 range, it is essential for the company to monitor and possibly improve this ratio to optimize its inventory management efficiency and overall financial performance.