Jazz Pharmaceuticals PLC (JAZZ)

Quick ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash 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
Receivables US$ in thousands
Total current liabilities US$ in thousands 1,038,570 1,536,690 933,193 809,303 653,745
Quick ratio 2.88 1.06 0.98 0.73 3.26

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,412,860K + $580,000K + $—K) ÷ $1,038,570K
= 2.88

The quick ratio of Jazz Pharmaceuticals PLC has fluctuated over the years as follows: 3.26 in December 31, 2020, declining to 0.73 by December 31, 2021, before gradually improving to 0.98 in December 31, 2022. It further increased to 1.06 by December 31, 2023, and significantly rose to 2.88 by December 31, 2024.

A quick ratio above 1 indicates that the company has sufficient liquid assets to cover its short-term liabilities, implying a strong liquidity position. However, the sharp drop in 2021 could signify potential liquidity challenges or a change in the company's liquidity management strategy. The subsequent recovery and strong improvement in 2024 suggest an enhanced ability to meet short-term obligations, potentially resulting from improved cash management or asset liquidity.

Overall, Jazz Pharmaceuticals PLC's quick ratio performance demonstrates a mix of fluctuations and recoveries, highlighting the importance of closely monitoring liquidity metrics to ensure adequate financial stability and operational flexibility.