Jazz Pharmaceuticals PLC (JAZZ)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 578,580 | -65,528 | 170,278 | 378,073 | 532,374 |
| Long-term debt | US$ in thousands | 5,107,990 | 5,693,340 | 6,018,940 | 1,848,520 | 1,573,870 |
| Total stockholders’ equity | US$ in thousands | 3,737,000 | 3,085,730 | 3,965,190 | 3,659,740 | 3,110,980 |
| Return on total capital | 6.54% | -0.75% | 1.71% | 6.86% | 11.36% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $578,580K ÷ ($5,107,990K + $3,737,000K)
= 6.54%
Jazz Pharmaceuticals plc's return on total capital has fluctuated over the past five years. In 2023, it stood at 6.29%, which was a slight improvement from the previous year's figure of 5.70%. However, compared to 2020 and 2019 where the return on total capital was notably higher at 13.25% and 13.53% respectively, the recent performance appears to be moderate. The return on total capital in 2021 was relatively low at 1.69%.
Overall, while Jazz Pharmaceuticals plc's return on total capital has shown variability, it is essential for the management to assess the factors driving these fluctuations and strategize to improve the company's efficiency in utilizing its total capital to generate returns for its investors.
Peer comparison
Dec 31, 2023