Jazz Pharmaceuticals PLC (JAZZ)

Activity ratios

Short-term

Turnover ratios

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
Receivables turnover 5.40 5.93 6.04 5.87 5.48 5.78 5.68 5.58 5.32 5.74 5.19 5.89 5.96 6.30 6.29 6.89 6.06 7.69 6.38 6.10
Payables turnover 19.00 17.52 21.28 16.88 23.69 21.37 27.98 29.04 19.72 27.21 22.93 15.07 46.39 19.73 25.80 19.22 23.87 10.55 6.43 7.74
Working capital turnover 2.01 2.22 1.79 1.95 2.13 1.97 1.79 1.81 1.66 1.51 1.27 1.01 1.08 1.19 1.17 1.95 1.71 1.82 1.98 2.19

Jazz Pharmaceuticals plc's activity ratios provide insights into the efficiency with which the company manages its assets and liabilities to generate sales.

1. Inventory turnover: This ratio measures how effectively the company is managing its inventory levels. Jazz Pharmaceuticals' inventory turnover has shown some fluctuations over the quarters, ranging from 0.52 to 0.82. A lower turnover rate may indicate excess inventory or slow-moving products, while a higher turnover rate suggests efficient inventory management.

2. Receivables turnover: This ratio assesses how quickly the company collects its accounts receivable. Jazz Pharmaceuticals' receivables turnover has remained relatively stable, ranging from 5.62 to 6.16. A higher turnover implies effective credit policies and collection efforts, while a lower turnover may indicate potential liquidity issues.

3. Payables turnover: This ratio reflects how efficiently the company pays its suppliers. Jazz Pharmaceuticals' payables turnover has varied significantly, ranging from 4.24 to 7.03. A higher turnover rate suggests the company is effectively managing its payables, whereas a lower turnover could imply cash flow challenges or strained supplier relationships.

4. Working capital turnover: This ratio evaluates how well the company utilizes its working capital to generate revenue. Jazz Pharmaceuticals' working capital turnover has shown some variability, ranging from 1.82 to 2.27. A higher turnover indicates efficient utilization of working capital, while a lower turnover may suggest inefficiencies in managing current assets and liabilities.

Overall, Jazz Pharmaceuticals' activity ratios demonstrate a mix of efficiency in managing inventory, receivables, payables, and working capital. Monitoring these ratios over time can help assess the company's operational effectiveness and financial health.

Average number of days

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
Days of inventory on hand (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
Days of sales outstanding (DSO) days 67.62 61.60 60.45 62.19 66.62 63.20 64.32 65.40 68.55 63.60 70.34 62.02 61.28 57.95 58.01 53.01 60.20 47.47 57.21 59.87
Number of days of payables days 19.21 20.83 17.15 21.63 15.41 17.08 13.04 12.57 18.51 13.42 15.92 24.23 7.87 18.50 14.15 18.99 15.29 34.60 56.77 47.17

The activity ratios of Jazz Pharmaceuticals plc indicate the efficiency of the company in managing its inventory, receivables, and payables.

Days of inventory on hand (DOH) show that the company took an average of around 450-500 days to sell its inventory in the last four quarters. A decreasing trend in DOH from Q1 of 2023 to Q4 of 2023 suggests improved inventory management efficiency.

Days of sales outstanding (DSO) demonstrate that Jazz Pharmaceuticals collects its receivables in approximately 59-67 days. A decreasing trend in DSO from Q1 of 2023 to Q4 of 2023 reflects the company's ability to collect revenues from sales more promptly.

The number of days of payables highlights that Jazz Pharmaceuticals takes an average of around 68-86 days to pay its suppliers. There was a fluctuating trend in the payables period from Q1 to Q4 of 2023.

Overall, the company showed positive signs of inventory turnover and collection of receivables, while the management of payables varied throughout the quarters. Efficient management of these activity ratios is crucial for maintaining liquidity and optimal working capital levels.

Long-term

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
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
Total asset turnover 0.33 0.33 0.33 0.33 0.33 0.33 0.30 0.27 0.24 0.23 0.20 0.36 0.36 0.36 0.37 0.42 0.39 0.37 0.36 0.37

The long-term activity ratios of Jazz Pharmaceuticals plc indicate the efficiency with which the company is utilizing its assets to generate sales. The fixed asset turnover has shown a slight increase over the quarters, reaching a high of 22.60 in Q4 2023, suggesting that the company is generating more revenue per dollar of fixed assets. This could be indicative of effective management of long-term assets such as property, plant, and equipment.

On the other hand, the total asset turnover has remained relatively stable around 0.34, indicating that the company is generating consistent sales revenue relative to its total assets. While not showing significant variation, this ratio demonstrates the company's ability to efficiently utilize both its fixed and current assets to drive sales.

Overall, Jazz Pharmaceuticals plc appears to be effectively managing its long-term assets to generate revenue, as evidenced by the steady total asset turnover and improvement in fixed asset turnover over the quarters. Further monitoring of these ratios will be essential to assess the company's ongoing performance in terms of asset utilization and revenue generation.