Jazz Pharmaceuticals PLC (JAZZ)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	111.65	116.02	114.50	116.34	121.21	121.62	151.55	168.87	197.97	239.22	307.26	35.99	27.86	25.21	26.16	24.52	26.28	35.10	47.64	67.12
Days of sales outstanding (DSO)	days	67.62	61.60	60.45	62.19	66.62	63.20	64.32	65.40	68.55	63.60	70.34	62.02	61.28	57.95	58.01	53.01	60.20	47.47	57.21	59.87
Number of days of payables	days	19.21	20.83	17.15	21.63	15.41	17.08	13.04	12.57	18.51	13.42	15.92	24.23	7.87	18.50	14.15	18.99	15.29	34.60	56.77	47.17
Cash conversion cycle	days	160.05	156.78	157.80	156.89	172.42	167.74	202.82	221.71	248.01	289.40	361.68	73.78	81.27	64.67	70.02	58.54	71.19	47.97	48.08	79.81

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 111.65 + 67.62 – 19.21
= 160.05

The cash conversion cycle for Jazz Pharmaceuticals plc has shown fluctuations over the past eight quarters.

In Q4 2023, the cash conversion cycle was 481.39 days, which was an improvement compared to the previous quarter where it stood at 430.02 days. This suggests that the company was able to manage its cash flows more efficiently in Q4 2023.

Looking back further, Q3 2023 had a cash conversion cycle of 430.02 days, which was an improvement from Q2 2023 at 446.07 days. This indicates that the company had a more streamlined process in converting its investments in inventory and accounts receivable into cash during that period.

Comparing the most recent quarters to the same quarters in the previous year, there has been a noticeable improvement in the cash conversion cycle. For instance, in Q4 2023, the cycle was lower at 481.39 days compared to 485.89 days in Q4 2022.

Overall, Jazz Pharmaceuticals plc has shown some progress in managing its cash conversion cycle, with fluctuations being observed but with an overall trend of improvement in recent quarters. This suggests that the company may be becoming more efficient in managing its working capital and turning its investments into cash more effectively.