Jazz Pharmaceuticals PLC (JAZZ)
Working capital 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 | ||
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Revenue (ttm) | US$ in thousands | 4,068,943 | 3,992,713 | 3,909,883 | 3,843,380 | 3,834,209 | 3,794,392 | 3,762,904 | 3,738,465 | 3,659,374 | 3,583,982 | 3,481,445 | 3,300,378 | 3,094,238 | 2,863,024 | 2,625,797 | 2,436,422 | 2,363,567 | 2,279,790 | 2,216,604 | 2,188,301 |
Total current assets | US$ in thousands | 4,629,030 | 4,390,420 | 3,495,930 | 3,361,210 | 3,263,920 | 3,245,750 | 3,009,860 | 2,784,650 | 2,606,140 | 2,571,500 | 2,590,830 | 2,500,860 | 2,611,330 | 2,628,230 | 2,953,960 | 3,166,900 | 2,839,570 | 2,555,570 | 2,302,350 | 1,517,640 |
Total current liabilities | US$ in thousands | 1,038,570 | 1,029,980 | 1,556,020 | 1,562,210 | 1,536,690 | 1,573,330 | 945,265 | 908,902 | 933,193 | 812,954 | 705,442 | 737,409 | 809,303 | 735,053 | 880,588 | 752,093 | 653,745 | 642,133 | 409,960 | 396,123 |
Working capital turnover | 1.13 | 1.19 | 2.02 | 2.14 | 2.22 | 2.27 | 1.82 | 1.99 | 2.19 | 2.04 | 1.85 | 1.87 | 1.72 | 1.51 | 1.27 | 1.01 | 1.08 | 1.19 | 1.17 | 1.95 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,068,943K ÷ ($4,629,030K – $1,038,570K)
= 1.13
Jazz Pharmaceuticals PLC's working capital turnover ratio has shown fluctuations over the periods covered in the data. Initially, the ratio was relatively high at around 1.95 in March 2020, indicating efficient utilization of working capital to generate sales. However, there was a notable decline in the ratio in the subsequent periods, reaching a low of 1.01 in March 2021. This decrease suggests a potential inefficiency in managing working capital during that time.
From June 2021 onwards, there was an improvement in the working capital turnover ratio, reaching a peak of 2.27 in September 2023. These higher values indicate that Jazz Pharmaceuticals PLC was able to generate more sales revenue relative to its working capital investment during these periods.
The ratio dipped slightly in the last quarter of 2024 to 1.13, but overall, the trend in recent periods has shown a generally positive performance in terms of working capital efficiency. The increasing trend from June 2022 to September 2023 and the subsequent stabilization suggest improvements in managing working capital to support sales growth. However, the significant fluctuations over the years indicate the need for continuous monitoring and optimization of working capital management practices at Jazz Pharmaceuticals PLC.
Peer comparison
Dec 31, 2024