Jazz Pharmaceuticals PLC (JAZZ)

Operating profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	716,630	578,580	512,268	170,278	765,462
Revenue	US$ in thousands	4,068,950	3,834,200	3,659,370	3,094,240	2,363,570
Operating profit margin		17.61%	15.09%	14.00%	5.50%	32.39%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $716,630K ÷ $4,068,950K
= 17.61%

The operating profit margin of Jazz Pharmaceuticals PLC has fluctuated over the years, showing both positive and negative trends. In December 2020, the operating profit margin was at a robust 32.39%, indicating that the company was efficiently controlling its operating expenses and generating strong profits from its core business activities. However, there was a notable decline in the operating profit margin in December 2021 to 5.50%, which may suggest an increase in operating expenses relative to revenue during that period.

Subsequently, there was a recovery in the operating profit margin in December 2022 to 14.00%, showing an improvement in the company's operational efficiency compared to the previous year. This trend continued in December 2023 with a further increase to 15.09%, indicating that Jazz Pharmaceuticals PLC was managing its operational costs effectively while generating profits.

Furthermore, in December 2024, the operating profit margin of Jazz Pharmaceuticals PLC reached 17.61%, demonstrating a positive upward trajectory and an enhanced ability to convert revenue into operating profit. Overall, despite fluctuations, the company has shown resilience and the ability to adapt to changing market conditions to maintain a reasonable level of operating profitability. It is important for Jazz Pharmaceuticals PLC to continue monitoring and managing its operating expenses to sustain and improve its operating profit margin in the future.