Jazz Pharmaceuticals PLC (JAZZ)

Return on total capital

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 749,278 767,027 679,209 637,402 719,765 629,155 604,865 608,223 581,802 823,016 703,283 474,880 475,907 337,090 514,928 788,202 435,130 286,821 265,492 269,465
Long-term debt US$ in thousands
Total stockholders’ equity US$ in thousands 4,093,760 4,171,070 3,762,600 3,696,460 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
Return on total capital 18.30% 18.39% 18.05% 17.24% 19.26% 18.03% 17.16% 18.24% 18.85% 29.98% 21.97% 13.16% 12.00% 8.56% 12.46% 20.75% 11.89% 8.49% 8.45% 9.59%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $749,278K ÷ ($—K + $4,093,760K)
= 18.30%

Jazz Pharmaceuticals PLC's return on total capital has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio started at 9.59% in March 2020, decreased to 8.45% by June 2020, and then slightly increased to 8.49% by September 2020. There was a notable improvement in December 2020, with a return on total capital of 11.89%.

The ratio experienced significant growth in the following quarters, reaching a peak of 29.98% in September 2022. This exceptionally high return was followed by fluctuations in the range of 17% to 21% until December 2024, indicating relative stability in generating returns in the subsequent periods.

Overall, Jazz Pharmaceuticals PLC's return on total capital trended positively over the period, with occasional fluctuations but displaying an increasing and generally healthy performance in utilizing its capital effectively to generate returns for its shareholders.