Jazz Pharmaceuticals PLC (JAZZ)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 3,737,000 | 3,085,730 | 3,965,190 | 3,659,740 | 3,110,980 |
| ROE | 11.10% | -7.26% | -8.31% | 6.52% | 16.82% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $414,832K ÷ $3,737,000K
= 11.10%
Jazz Pharmaceuticals plc's return on equity (ROE) has displayed significant fluctuations over the past five years. In 2019, the company achieved a robust ROE of 16.82%, indicating strong profitability relative to shareholders' equity. However, this performance declined in subsequent years, with ROE decreasing to 6.52% in 2020, followed by negative ROE figures in 2021 and 2022 at -8.31% and -7.26%, respectively.
The negative ROE figures in 2021 and 2022 signify that Jazz Pharmaceuticals' net income was not sufficient to cover the shareholders' equity, resulting in a lower or even negative return. However, there was a moderate improvement in 2023, with the ROE rising to 11.10%. Despite the improvement, the ROE in 2023 still falls short of the level achieved in 2019.
Overall, Jazz Pharmaceuticals plc's ROE analysis suggests that the company has experienced fluctuations in its profitability and efficiency in generating returns for shareholders over the past five years. Further investigation into the factors influencing these fluctuations would be necessary to evaluate the company's financial performance comprehensively.
Peer comparison
Dec 31, 2023