Jazz Pharmaceuticals PLC (JAZZ)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 2.24 | 2.06 | 3.18 | 3.06 | 2.79 | 3.16 | 3.67 | 3.39 | 3.23 | 3.58 | 3.35 | 4.21 | 4.34 | 3.98 | 5.62 | 3.83 | 4.47 | 3.89 | 3.71 | 3.15 |
| Quick ratio | 1.71 | 1.41 | 2.09 | 2.17 | 1.67 | 1.85 | 1.94 | 1.44 | 1.43 | 1.59 | 1.59 | 3.78 | 3.87 | 3.55 | 5.00 | 3.28 | 3.93 | 3.42 | 3.23 | 2.78 |
| 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 |
Jazz Pharmaceuticals plc has shown relatively stable liquidity ratios over the past eight quarters. The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has fluctuated between 2.06 and 3.18. This indicates that the company has generally had sufficient current assets to cover its current liabilities, with the ratio peaking in Q2 2023.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also shown a consistent pattern, ranging from 1.67 to 2.49. This suggests that Jazz Pharmaceuticals plc has maintained a strong ability to meet its short-term obligations without relying on inventory.
The cash ratio, which provides the most conservative measure of liquidity by considering only cash and cash equivalents, has varied between 1.16 and 1.84. This indicates that the company has had a sufficient amount of cash on hand to cover its current liabilities, with the highest ratio observed in Q2 2023.
Overall, the liquidity ratios of Jazz Pharmaceuticals plc demonstrate a healthy financial position, with consistent levels of liquidity and the ability to meet short-term obligations effectively.
Additional liquidity measure
| 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 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 |
The cash conversion cycle measures the time it takes for a company like Jazz Pharmaceuticals plc to convert its investments in inventory and other resources into cash inflows from sales. A shorter cash conversion cycle is generally preferred as it indicates efficient use of resources and quicker turnover of inventory.
Analyzing the data provided, we can see that Jazz Pharmaceuticals plc has experienced fluctuations in its cash conversion cycle over the past 8 quarters. In Q4 2023, the company's cash conversion cycle was 481.39 days, showing an improvement from the previous quarter's 430.02 days.
It is worth noting that Jazz Pharmaceuticals plc managed to reduce its cash conversion cycle by 50.37 days from Q3 to Q4 2023, which suggests better management of working capital and more efficient operations during that period.
Looking at the historical trend, the company's cash conversion cycle was at its lowest in Q1 2023 at 422.92 days, indicating optimal efficiency in converting investments into cash. However, there was a significant increase in the cycle during Q2 and Q3 2022, peaking at 708.68 days in Q1 2022.
Overall, Jazz Pharmaceuticals plc's cash conversion cycle has shown variability over the quarters, with some periods demonstrating improved efficiency in working capital management. Continued monitoring and analysis of this metric will be essential for the company to maintain optimal cash flow and operational effectiveness.