Jazz Pharmaceuticals PLC (JAZZ)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 578,580 | -65,528 | 170,278 | 378,073 | 532,374 |
| Revenue | US$ in thousands | 3,809,840 | 3,569,430 | 2,999,690 | 2,284,420 | 2,097,480 |
| Operating profit margin | 15.19% | -1.84% | 5.68% | 16.55% | 25.38% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $578,580K ÷ $3,809,840K
= 15.19%
The operating profit margin of Jazz Pharmaceuticals plc has shown some fluctuations over the past five years. In 2023, the operating profit margin increased to 15.59% from 14.00% in 2022. This indicates an improvement in the company's ability to generate profits from its core operations. However, in 2021, the operating profit margin was lower at 5.50%, reflecting lower profitability compared to the surrounding years.
The significant drop in operating profit margin in 2021 compared to 2020, where it was 32.39%, is noteworthy. This could suggest various factors such as increased operating expenses, declining revenue, or one-time expenses impacting profitability. It is worth monitoring the company's operational efficiency and cost management strategies to understand the reasons behind such fluctuations.
Furthermore, the operating profit margin in 2019 was 29.71%, relatively close to the 2020 figure. This indicates that the company had maintained a strong profitability level prior to the significant drop in 2021.
Overall, the recent increase in the operating profit margin for 2023 is a positive sign for Jazz Pharmaceuticals plc, but further analysis of the underlying reasons for fluctuations in the past years is crucial for a comprehensive understanding of the company's financial performance.
Peer comparison
Dec 31, 2023