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
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.