Jazz Pharmaceuticals PLC (JAZZ)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	414,832	-224,060	-329,668	238,616	523,367
Total assets	US$ in thousands	11,393,400	10,835,300	12,298,600	6,535,900	5,538,900
ROA		3.64%	-2.07%	-2.68%	3.65%	9.45%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $414,832K ÷ $11,393,400K
= 3.64%

Jazz Pharmaceuticals plc's return on assets (ROA) has fluctuated over the past five years. In 2019, the company achieved a robust ROA of 9.45%, indicating that for every dollar of assets, it generated a profit of 9.45 cents. However, there was a decline in ROA in 2020 to 3.65%, followed by negative ROAs in 2021 and 2022 at -2.68% and -2.07%, respectively, suggesting that the company's profit generated from its assets turned negative in those years.

The latest available data for December 31, 2023, shows a positive ROA of 3.64%, indicating a modest recovery compared to the negative ROA figures in the previous two years. This signifies that Jazz Pharmaceuticals plc has been able to generate a profit from its assets in 2023, albeit at a lower rate compared to 2019.

Overall, the trend in Jazz Pharmaceuticals plc's ROA in recent years demonstrates variability in the efficiency with which the company is utilizing its assets to generate profits. Investors and analysts may monitor this metric closely to assess the company's operational performance and profitability sustainability in the future.