Jazz Pharmaceuticals PLC (JAZZ)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.93 | 3.05 | 3.51 | 3.10 | 1.79 |
Jazz Pharmaceuticals PLC has consistently displayed a strong solvency position, as indicated by its debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio all being 0.00 across the years 2020 to 2024. This implies that the company's total debt is minimal compared to its assets, capital, and equity, reflecting a low financial risk and a healthy financial structure.
Furthermore, the financial leverage ratio has shown some fluctuations over the years, starting at 1.79 in 2020 and peaking at 3.51 in 2022 before gradually declining to 2.93 in 2024. Despite these variations, the financial leverage ratio has generally stayed within a reasonable range, indicating that the company relies moderately on debt financing to support its operations and growth.
Overall, Jazz Pharmaceuticals PLC's solvency ratios point towards a stable and well-managed financial position, with minimal debt levels and a prudent approach to capital structure management.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 2.98 | 2.03 | -0.26 | 1.70 | 3.72 |
Based on the provided data, Jazz Pharmaceuticals PLC's interest coverage ratio has varied over the past five years.
As of December 31, 2020, the interest coverage ratio was 3.72, indicating that the company's operating income was sufficient to cover its interest expenses by approximately 3.72 times.
However, by December 31, 2021, the interest coverage ratio had decreased to 1.70, suggesting that the company's ability to cover its interest expenses with its operating income had weakened.
By December 31, 2022, the interest coverage ratio had turned negative at -0.26, which implies that the company's operating income was insufficient to cover its interest expenses, potentially raising concerns about its financial stability.
The situation improved by December 31, 2023, with an interest coverage ratio of 2.03, indicating a partial recovery in the company's ability to meet its interest obligations.
By December 31, 2024, the interest coverage ratio further improved to 2.98, but it still remained below the initial level in 2020.
Overall, the fluctuation in Jazz Pharmaceuticals PLC's interest coverage ratio over the five-year period suggests varying levels of financial health and the need for careful monitoring of the company's ability to manage its interest expenses in relation to its operating income.