Jazz Pharmaceuticals PLC (JAZZ)

Current ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Total current assets US$ in thousands 4,629,030 3,435,430 2,606,140 2,611,330 2,839,570
Total current liabilities US$ in thousands 1,038,570 1,536,690 933,193 809,303 653,745
Current ratio 4.46 2.24 2.79 3.23 4.34

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $4,629,030K ÷ $1,038,570K
= 4.46

Based on the data provided, Jazz Pharmaceuticals PLC's current ratio has exhibited some fluctuations over the years. The company's current ratio was 4.34 as of December 31, 2020, indicating a healthy liquidity position. However, there has been a subsequent decline in the current ratio to 3.23 as of December 31, 2021, and further decreased to 2.79 as of December 31, 2022. This downtrend suggests a potential decrease in the company's ability to meet its short-term obligations with its current assets.

By December 31, 2023, the current ratio dropped even further to 2.24, which may raise concerns about the company's liquidity position and its ability to cover its short-term liabilities. However, there was a significant improvement in the current ratio to 4.46 by December 31, 2024, which indicates a more favorable liquidity position compared to the previous year.

Overall, the current ratio trend of Jazz Pharmaceuticals PLC reveals some fluctuations, with a notable decline in 2022 and 2023 but a strong recovery in 2024. It is essential for stakeholders to monitor the company's liquidity position closely to ensure it can effectively manage its short-term obligations.