Jazz Pharmaceuticals PLC (JAZZ)

Return on equity (ROE)

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Net income (ttm)	US$ in thousands	414,832	79,954	-86,514	-156,287	-224,060	-18,687	-51,872	-449,853	-329,668	-160,903	40,164	518,281	238,616	179,194	133,236	280,333	523,367	608,845	655,885	486,308
Total stockholders’ equity	US$ in thousands	3,737,000	3,489,370	3,525,680	3,335,040	3,085,730	2,745,190	3,200,780	3,608,490	3,965,190	3,938,480	4,131,490	3,797,690	3,659,740	3,377,200	3,141,800	2,808,500	3,110,980	3,054,400	2,983,430	2,730,450
ROE		11.10%	2.29%	-2.45%	-4.69%	-7.26%	-0.68%	-1.62%	-12.47%	-8.31%	-4.09%	0.97%	13.65%	6.52%	5.31%	4.24%	9.98%	16.82%	19.93%	21.98%	17.81%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $414,832K ÷ $3,737,000K
= 11.10%

To analyze Jazz Pharmaceuticals plc's return on equity (ROE) performance based on the provided data table, we observe a fluctuating trend in ROE over the eight quarters displayed. In Q4 2023, the ROE stood at 11.10%, showing a significant improvement compared to the previous quarters. This increase indicates that the company generated a higher return for its shareholders relative to its equity base during this period.

However, prior to this improvement, Jazz Pharmaceuticals' ROE had been relatively subdued, with negative ROE figures in Q1 2023, Q2 2023, and Q4 2022. These negative values suggest that the company was not efficiently utilizing its shareholders' equity to generate profits during those quarters.

It is essential to note that the company's ROE performance was volatile, as evidenced by the fluctuating values across the quarters. This fluctuation could be attributed to various factors such as changes in profitability, equity structure, or financial leverage.

Overall, Jazz Pharmaceuticals plc's ROE performance indicates a mix of positive and negative trends, highlighting the need for further analysis to understand the underlying factors influencing the company's profitability and shareholder value creation.