Jazz Pharmaceuticals PLC (JAZZ)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 100.00% | 88.64% | 85.23% | 85.76% | 93.70% |
| Operating profit margin | 17.61% | 15.09% | 14.00% | 5.50% | 32.39% |
| Pretax margin | 11.56% | 7.77% | -10.19% | -3.65% | 11.64% |
| Net profit margin | 13.77% | 10.82% | -5.85% | -10.63% | 10.10% |
Jazz Pharmaceuticals PLC's profitability ratios exhibit fluctuations over the analyzed period. The gross profit margin declined from 93.70% in 2020 to 85.23% in 2022 but showed an improvement to 100.00% in 2024. This suggests a strong ability to generate profits after accounting for the cost of goods sold.
The operating profit margin experienced a significant decrease from 32.39% in 2020 to 5.50% in 2021, indicating a decrease in operational efficiency. However, there was an upward trend in subsequent years, reaching 17.61% in 2024, indicating better cost management and operational performance.
The pretax margin started at 11.64% in 2020, but profitability turned negative in 2021 and 2022, with margins of -3.65% and -10.19%, respectively. The company showed recovery in 2023 and 2024, reaching 11.56% by the end of 2024. This highlights fluctuations in pre-tax profitability due to operational challenges and recovery efforts.
The net profit margin reflects a similar trend to the pretax margin, starting at 10.10% in 2020, turning negative in 2021 and 2022, and then rebounding to 13.77% in 2024. The positive shift in 2024 indicates improved efficiency in managing all costs, including operating expenses and taxes, to generate higher net profits.
In conclusion, while Jazz Pharmaceuticals PLC faced challenges in maintaining profitability in 2021 and 2022, the company demonstrated resilience and recovery in subsequent years, as evidenced by improving operating, pretax, and net profit margins. Continued monitoring of these ratios will be crucial to assess the company's long-term profitability sustainability.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.97% | 5.08% | 4.73% | 1.38% | 11.71% |
| Return on assets (ROA) | 4.66% | 3.64% | -1.98% | -2.67% | 3.65% |
| Return on total capital | 17.31% | 15.72% | -2.45% | 11.99% | 10.15% |
| Return on equity (ROE) | 13.68% | 11.10% | -6.94% | -8.30% | 6.52% |
The profitability ratios of Jazz Pharmaceuticals PLC demonstrate varying performance over the years.
- Operating return on assets (Operating ROA) increased from 11.71% in December 2020 to 5.97% in December 2024, indicating an overall positive trend in the company's ability to generate profits from its operational assets.
- Return on assets (ROA) improved from a negative value of -2.67% in December 2021 to 4.66% in December 2024, signifying that the company became more efficient in generating profits from its total assets over the years.
- Return on total capital experienced fluctuations, ranging from -2.45% in December 2022 to 17.31% in December 2024, showcasing an improvement in the company's ability to deliver returns to both debt and equity holders.
- Return on equity (ROE) fluctuated from -8.30% in December 2021 to 13.68% in December 2024, indicating a recovery from low profitability to a more favorable return for shareholders.
Overall, Jazz Pharmaceuticals PLC demonstrated mixed profitability performance, with some ratios showing improvement while others fluctuated. The company's ability to generate returns from assets and capital has shown positive trends in certain years, indicating a potential for enhanced profitability and shareholder value in the future.