Jazz Pharmaceuticals PLC (JAZZ)

The solvency ratios of Jazz Pharmaceuticals plc indicate the company's ability to meet its long-term financial obligations and leverage levels over the past five years.

The debt-to-assets ratio has fluctuated between 0.29 to 0.53 over the period, showing the proportion of the company's assets financed by debt. A decrease in this ratio indicates a reduction in reliance on debt to fund assets.

The debt-to-capital ratio has ranged from 0.34 to 0.65, reflecting the proportion of the company's capital structure funded by debt. There seems to be a trend of increased debt financing, as the ratio has generally increased over the years.

The debt-to-equity ratio has varied from 0.52 to 1.86, illustrating the extent to which debt is utilized to finance the company's operations compared to shareholder equity. The higher ratios suggest a higher reliance on debt financing relative to equity.

The financial leverage ratio has fluctuated between 1.78 to 3.51, demonstrating the level of assets being financed by debt compared to equity. The increasing trend in this ratio implies higher financial risk due to higher leverage.

Overall, while Jazz Pharmaceuticals plc maintains a moderate level of solvency, the increasing trend in debt-related ratios over the years warrants close monitoring of the company's debt management and capital structure to ensure sustainable financial health and stability.

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Coverage ratios

The interest coverage ratio for Jazz Pharmaceuticals plc has varied significantly over the past five years. In 2019 and 2020, the company had very strong interest coverage ratios of 8.83 and 7.65 respectively, indicating that Jazz Pharmaceuticals had more than enough earnings to cover its interest expenses during those years.

However, there was a significant drop in the interest coverage ratio in 2021 to 0.61, suggesting that the company's earnings were barely sufficient to cover its interest obligations that year. This could indicate a potential financial strain or increased indebtedness during that period.

The interest coverage ratio improved in 2022 to 1.74, but it remained below ideal levels, indicating that Jazz Pharmaceuticals' ability to cover interest payments had not fully recovered.

In 2023, the interest coverage ratio further increased to 2.05, showing a positive trend in the company's ability to cover its interest expenses.

Overall, it is important for investors and stakeholders to monitor Jazz Pharmaceuticals' interest coverage ratio closely to assess the company's financial health and ability to meet its debt obligations.