Jazz Pharmaceuticals PLC (JAZZ)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 1,506,310 | 1,335,690 | 1,282,300 | 1,167,910 | 881,482 | 839,358 | 711,265 | 490,835 | 591,448 | 671,780 | 891,400 | 2,097,530 | 1,057,770 | 741,942 | 786,082 | 701,602 | 637,344 | 795,175 | 637,739 | 547,466 |
| Short-term investments | US$ in thousands | 420,000 | 250,000 | 80,000 | 180,000 | 30,000 | 60,000 | 60,000 | — | — | — | — | 335,000 | 1,075,000 | 1,175,000 | 910,000 | 280,000 | 440,000 | 275,000 | 245,000 | 285,000 |
| 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 |
| Cash ratio | 1.25 | 1.01 | 1.44 | 1.48 | 0.98 | 1.11 | 1.09 | 0.67 | 0.73 | 0.91 | 1.01 | 3.23 | 3.26 | 2.99 | 4.14 | 2.48 | 2.96 | 2.74 | 2.39 | 2.01 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,506,310K
+ $420,000K)
÷ $1,536,690K
= 1.25
The cash ratio measures a company's ability to cover its short-term liabilities using only its cash and cash equivalents. Jazz Pharmaceuticals plc's cash ratio has fluctuated over the past eight quarters, ranging from a low of 1.16 in Q1 2022 to a high of 1.84 in Q2 2023.
In general, a cash ratio above 1 indicates that the company has enough liquid assets to cover its short-term obligations. Jazz Pharmaceuticals plc has consistently maintained a cash ratio above 1 throughout the periods analyzed, indicating a strong liquidity position.
The increase in the cash ratio from Q1 2022 to Q2 2023 suggests an improvement in Jazz Pharmaceuticals' ability to meet its short-term liabilities using cash and cash equivalents. However, the fluctuation in the ratio over the quarters may indicate changes in the company's cash position and its ability to manage liquidity effectively.
Overall, with a relatively stable cash ratio above 1, Jazz Pharmaceuticals plc appears to have a healthy cash position to meet its short-term financial obligations.
Peer comparison
Dec 31, 2023