Jazz Pharmaceuticals PLC (JAZZ)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 2,412,860 | 1,506,310 | 881,482 | 591,448 | 1,057,770 |
| Short-term investments | US$ in thousands | 580,000 | 120,000 | 30,000 | 0 | 1,075,000 |
| Total current liabilities | US$ in thousands | 1,038,570 | 1,536,690 | 933,193 | 809,303 | 653,745 |
| Cash ratio | 2.88 | 1.06 | 0.98 | 0.73 | 3.26 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,412,860K
+ $580,000K)
÷ $1,038,570K
= 2.88
The cash ratio for Jazz Pharmaceuticals PLC has shown fluctuations over the past five years. As of December 31, 2020, the company had a relatively high cash ratio of 3.26, indicating a strong ability to cover its short-term liabilities with its available cash. However, by December 31, 2021, the cash ratio decreased significantly to 0.73, suggesting a potential strain on the company's liquidity position.
Subsequently, there was a slight improvement in the cash ratio to 0.98 by December 31, 2022, and a further increase to 1.06 by December 31, 2023. These improvements indicate a better ability to meet short-term obligations with cash on hand.
Notably, by December 31, 2024, the cash ratio increased notably to 2.88, signifying a significant enhancement in the company's liquidity position. This increase could indicate improved cash management practices or increased cash reserves during the period.
Overall, the fluctuation in Jazz Pharmaceuticals PLC's cash ratio over the years reflects changes in the company's liquidity position and its ability to meet short-term obligations with available cash. It will be essential for stakeholders to monitor this ratio closely to assess the company's ongoing liquidity health.
Peer comparison
Dec 31, 2024