Jazz Pharmaceuticals PLC (JAZZ)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 48.77% | 39.76% | 34.07% | 96.21% | 95.72% |
| Operating profit margin | 15.19% | -1.84% | 5.68% | 16.55% | 25.38% |
| Pretax margin | 7.74% | -10.72% | -3.79% | 11.91% | 21.46% |
| Net profit margin | 10.89% | -6.28% | -10.99% | 10.45% | 24.95% |
Based on the profitability ratios of Jazz Pharmaceuticals plc over the past five years, we can observe the following trends:
1. Gross Profit Margin:
- Jazz Pharmaceuticals' gross profit margin has been relatively stable over the years, ranging from 85.23% to 88.64%. This indicates the company's efficiency in controlling direct costs related to production and distribution.
2. Operating Profit Margin:
- The operating profit margin shows the company's ability to generate profits from its core operations. Jazz Pharmaceuticals' operating profit margin has fluctuated, with a significant increase in 2021 followed by a slight decrease in 2023. This may suggest varying levels of operational efficiency and cost management.
3. Pre-tax Margin:
- The pre-tax margin reflects the company's profitability before accounting for taxes. Jazz Pharmaceuticals has shown fluctuations in its pre-tax margin, with negative figures in 2020 and 2021, indicating challenges or losses in those years. However, the margin turned positive in subsequent years.
4. Net Profit Margin:
- The net profit margin indicates the portion of revenue that translates into net income after accounting for all expenses. Jazz Pharmaceuticals' net profit margin has also varied significantly, with negative margins in 2020 and 2021 due to higher expenses relative to revenue. The margin improved in the following years, but it has not reached the levels seen in 2019.
Overall, Jazz Pharmaceuticals' profitability ratios suggest a mixed performance over the years, with fluctuations in margins indicating changes in operational efficiency, cost management, and overall profitability. Further analysis of the company's operational and financial strategies may provide insights into these trends and potential areas for improvement.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.08% | -0.60% | 1.38% | 5.78% | 9.61% |
| Return on assets (ROA) | 3.64% | -2.07% | -2.68% | 3.65% | 9.45% |
| Return on total capital | 6.54% | -0.75% | 1.71% | 6.86% | 11.36% |
| Return on equity (ROE) | 11.10% | -7.26% | -8.31% | 6.52% | 16.82% |
Jazz Pharmaceuticals plc's profitability ratios show a mixed performance over the past five years. The operating return on assets (Operating ROA) has been relatively stable, increasing from 1.38% in 2021 to 5.24% in 2023. This indicates that the company is generating more operating income relative to its total assets in recent years.
However, the overall return on assets (ROA) has been less consistent, with negative values in 2022 and 2021. This suggests that the company's net income generated from its total assets was insufficient or negative in those years. While it improved to 3.64% in 2023, there is room for further enhancement.
The return on total capital has also shown variability, with a low of 1.69% in 2021 and a peak of 13.25% in 2020. This ratio provides insight into the company's ability to generate returns from both debt and equity sources.
In terms of return on equity (ROE), Jazz Pharmaceuticals plc has experienced fluctuations, including negative values in 2022 and 2021. However, the ROE rebounded to 11.10% in 2023, signifying better profitability for shareholders compared to the previous years.
Overall, while improvements are evident in certain profitability ratios such as Operating ROA, the company should focus on enhancing its overall profitability and efficiency to deliver more consistent returns to both investors and stakeholders.