Jazz Pharmaceuticals PLC (JAZZ)

Operating return on assets (Operating ROA)

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
Total assets US$ in thousands 12,012,300 11,393,400 10,835,300 12,298,600 6,535,900
Operating ROA 5.97% 5.08% 4.73% 1.38% 11.71%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $716,630K ÷ $12,012,300K
= 5.97%

The operating return on assets (ROA) for Jazz Pharmaceuticals PLC has exhibited fluctuations over the years. The trend shows a decline from 11.71% as of December 31, 2020, to 1.38% as of December 31, 2021, indicating a significant decrease in the company's profitability relative to its asset base. However, there has been a gradual improvement in the operating ROA since then, with figures of 4.73% as of December 31, 2022, 5.08% as of December 31, 2023, and 5.97% as of December 31, 2024.

The varying operating ROA values suggest that Jazz Pharmaceuticals PLC may have experienced changes in its operational efficiency and asset utilization over the years. It is important for the company to continue monitoring and managing its operating ROA to ensure sustainable profitability and effective utilization of its assets for future growth and success.