Jazz Pharmaceuticals PLC (JAZZ)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	4,068,950	3,398,630	3,118,860	2,653,480	2,214,650
Revenue	US$ in thousands	4,068,950	3,834,200	3,659,370	3,094,240	2,363,570
Gross profit margin		100.00%	88.64%	85.23%	85.76%	93.70%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $4,068,950K ÷ $4,068,950K
= 100.00%

Based on the data provided, the gross profit margin of Jazz Pharmaceuticals PLC has exhibited fluctuations over the five-year period from December 31, 2020, to December 31, 2024.

The gross profit margin started at a high level of 93.70% in December 2020, indicating that the company was efficiently generating profits from its core revenue sources after accounting for the cost of goods sold. However, there was a slight decrease in the gross profit margin to 85.76% by December 2021, suggesting a potential increase in the cost of goods sold relative to revenue.

The trend continued with a further decrease in the gross profit margin to 85.23% by December 2022. This decline may indicate challenges in maintaining profitability levels or increased competition impacting pricing strategies.

Subsequently, there was a notable improvement in the gross profit margin to 88.64% by December 2023, signaling a potential enhancement in cost management practices or a positive shift in revenue generation.

Finally, the gross profit margin reached its peak at 100.00% by December 2024, indicating that for that year, the company generated sufficient revenue to cover all associated costs of goods sold, resulting in a margin that suggests efficiency and profitability.

Overall, the analysis of Jazz Pharmaceuticals PLC's gross profit margin demonstrates a mix of fluctuations and improvements over the five-year period, reflecting the company's ability to manage costs, generate revenue, and potentially adapt to changing market conditions.