Jazz Pharmaceuticals PLC (JAZZ)

Working capital 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
Revenue (ttm)	US$ in thousands	3,809,836	3,720,411	3,685,651	3,662,251	3,569,427	3,471,828	3,371,195	3,194,350	2,999,693	2,864,101	2,628,980	2,436,329	2,361,556	2,277,779	2,214,357	2,184,676	2,158,500	2,053,217	1,985,763	1,953,884
Total current assets	US$ in thousands	3,435,430	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	1,630,270	1,520,560	1,370,070	1,305,620
Total current liabilities	US$ in thousands	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	364,490	390,439	369,493	413,999
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

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $3,809,836K ÷ ($3,435,430K – $1,536,690K)
= 2.01

Working capital turnover measures how efficiently a company utilizes its working capital to generate sales revenue. In the case of Jazz Pharmaceuticals plc, the working capital turnover ratio has exhibited fluctuations in recent quarters, ranging from 1.82 to 2.27.

The higher the working capital turnover ratio, the better, as it indicates that the company is effectively using its working capital to support sales activities. A higher ratio suggests that the company is efficiently managing its current assets and liabilities to drive revenue generation.

In the last quarter of 2023, the working capital turnover for Jazz Pharmaceuticals plc was 2.02, indicating that for every dollar of working capital, the company generated $2.02 of sales. This figure was slightly lower compared to the previous quarter's ratio of 2.27, suggesting a slight decrease in efficiency in utilizing working capital to generate revenue.

Overall, despite some fluctuations, Jazz Pharmaceuticals plc has demonstrated a reasonable level of efficiency in managing its working capital to support its sales activities. Monitoring the working capital turnover ratio over time can help assess the company's ability to effectively utilize its resources to drive revenue growth.