Jazz Pharmaceuticals PLC (JAZZ)

Gross profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Gross profit (ttm)	US$ in thousands	3,440,994	3,105,963	3,032,592	3,133,672	3,247,074	3,298,694	3,235,698	3,184,588	3,118,857	3,074,676	2,960,576	2,784,523	2,653,478	2,508,260	2,374,162	2,275,973	2,214,650	2,145,682	2,093,191	2,065,220
Revenue (ttm)	US$ in thousands	4,068,943	3,992,713	3,909,883	3,843,380	3,834,209	3,794,392	3,762,904	3,738,465	3,659,374	3,583,982	3,481,445	3,300,378	3,094,238	2,863,024	2,625,797	2,436,422	2,363,567	2,279,790	2,216,604	2,188,301
Gross profit margin		84.57%	77.79%	77.56%	81.53%	84.69%	86.94%	85.99%	85.18%	85.23%	85.79%	85.04%	84.37%	85.76%	87.61%	90.42%	93.41%	93.70%	94.12%	94.43%	94.38%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $3,440,994K ÷ $4,068,943K
= 84.57%

The gross profit margin of Jazz Pharmaceuticals PLC has shown a consistent decrease over the period from March 31, 2020, to December 31, 2024. The margin started at a high of 94.38% in March 2020, gradually declining to 77.56% by June 30, 2024, before increasing slightly to 84.57% by December 31, 2024.

The decreasing trend in the gross profit margin indicates that the company's cost of goods sold has been growing faster than its revenue during this period. This could be a result of various factors such as increased production costs, pricing pressures, or inefficiencies in the supply chain.

It is important for Jazz Pharmaceuticals PLC to closely monitor its gross profit margin as it directly impacts the company's profitability. Management may need to implement cost-saving measures, negotiate better supplier contracts, or adjust pricing strategies to improve the gross profit margin and enhance overall financial performance.