Jazz Pharmaceuticals PLC (JAZZ)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 393.44 | 500.30 | 482.19 | 888.34 | 233.82 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 393.44 | 500.30 | 482.19 | 888.34 | 233.82 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 393.44 + — – —
= 393.44
The cash conversion cycle for Jazz Pharmaceuticals PLC has shown fluctuations over the years. As of December 31, 2020, the company had a cash conversion cycle of 233.82 days, indicating that it took approximately 233.82 days to convert its investments in inventory and accounts receivable into cash.
However, by December 31, 2021, the cash conversion cycle significantly increased to 888.34 days, suggesting a longer period for the company to convert its resources into cash. This substantial increase may be a cause for concern as it indicates potential liquidity problems or inefficiencies in managing inventory and receivables.
In the subsequent years, the cash conversion cycle improved but remained elevated compared to the base year. By December 31, 2022, the cycle was 482.19 days, reflecting some progress in managing cash flows. The cycle further decreased to 500.30 days by December 31, 2023, and then dropped to 393.44 days by December 31, 2024.
Overall, the trend in Jazz Pharmaceuticals' cash conversion cycle shows variability and improvement over the years, with efforts made to streamline its operations and enhance cash conversion efficiency. However, the company needs to continue monitoring and optimizing its inventory and receivables management processes to maintain healthy cash flows and achieve sustainable growth.
Peer comparison
Dec 31, 2024