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.