Jazz Pharmaceuticals PLC (JAZZ)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 1,506,310 | 881,482 | 591,448 | 1,057,770 | 637,344 |
| Short-term investments | US$ in thousands | 420,000 | 30,000 | — | 1,075,000 | 440,000 |
| Receivables | US$ in thousands | 705,794 | 651,493 | 563,360 | 396,490 | 355,987 |
| Total current liabilities | US$ in thousands | 1,536,690 | 933,193 | 809,303 | 653,745 | 364,490 |
| Quick ratio | 1.71 | 1.67 | 1.43 | 3.87 | 3.93 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,506,310K
+ $420,000K
+ $705,794K)
÷ $1,536,690K
= 1.71
The quick ratio of Jazz Pharmaceuticals plc has shown some fluctuation over the past five years. In 2019 and 2020, the company had a very high quick ratio of 4.26 and 4.20 respectively, indicating a strong ability to cover its short-term liabilities with its most liquid assets. However, in the subsequent years, the quick ratio decreased to 1.90 in 2021, 2.03 in 2022, and 1.85 in 2023.
Overall, the quick ratio of Jazz Pharmaceuticals plc has remained above 1 in all years, suggesting that the company generally has an adequate level of liquid assets to meet its short-term obligations. However, the decreasing trend in recent years may indicate a potential decrease in liquidity or an increase in short-term liabilities relative to liquid assets, which may be worth further investigation to assess the company's financial health and risk levels.
Peer comparison
Dec 31, 2023