Jazz Pharmaceuticals PLC (JAZZ)

Quick 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	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
Receivables	US$ in thousands	705,794	627,841	610,389	623,938	651,493	601,179	594,034	572,392	563,360	499,023	506,660	413,976	396,490	361,664	351,920	317,301	355,987	267,031	311,249	320,485
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
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

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 measures a company's ability to meet its short-term obligations using its most liquid assets. A higher quick ratio indicates a stronger ability to cover immediate liabilities.

Analyzing Jazz Pharmaceuticals plc's quick ratio over the past eight quarters shows some fluctuations. The company maintained a healthy quick ratio above 1.5 in all quarters, indicating a good ability to meet short-term obligations. The ratio peaked at 2.49 in Q2 2023, suggesting a strong liquidity position at that time.

However, the quick ratio showed some inconsistency, with fluctuations between 1.67 and 2.49. While the ratio was generally above 2 in 2022, it dropped below that level in Q3 2023 and Q4 2023. This could indicate either a decrease in liquid assets or an increase in short-term obligations during those quarters.

Overall, while fluctuations occurred, Jazz Pharmaceuticals plc's quick ratio consistently remained at healthy levels, suggesting a relatively stable liquidity position during the period analyzed.