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.