Jazz Pharmaceuticals PLC (JAZZ)

Net profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	560,120	414,832	-214,139	-328,954	238,616
Revenue	US$ in thousands	4,068,950	3,834,200	3,659,370	3,094,240	2,363,570
Net profit margin		13.77%	10.82%	-5.85%	-10.63%	10.10%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $560,120K ÷ $4,068,950K
= 13.77%

Net profit margin is a key financial metric that indicates the percentage of revenue that translates into profit after all expenses are deducted. Analyzing the net profit margin of Jazz Pharmaceuticals PLC from 2020 to 2024 shows fluctuations in the company's profitability.

In December 2020, Jazz Pharmaceuticals PLC had a net profit margin of 10.10%, indicating that for every dollar of revenue generated, the company retained $0.101 as profit. However, the margin turned negative in December 2021, standing at -10.63%. This negative margin suggests that the company incurred higher expenses than the revenue generated during that period.

The trend continued with a further decline in the net profit margin to -5.85% in December 2022, indicating ongoing challenges in maintaining profitability. The company managed to reverse this trend in December 2023, with a significant improvement in the net profit margin to 10.82%. This positive margin suggests that Jazz Pharmaceuticals was able to control expenses and increase profitability during this period.

The most recent data point, December 2024, shows a substantial improvement in the net profit margin to 13.77%, indicating a healthy profitability level for the company. This increase suggests that Jazz Pharmaceuticals PLC implemented effective cost management strategies or experienced revenue growth that outpaced expenses.

Overall, the analysis of Jazz Pharmaceuticals PLC's net profit margin highlights the company's volatility in profitability over the years, with fluctuations from negative margins to positive margins. Monitoring this ratio is crucial for investors and stakeholders to assess the company's financial health and performance.