Jazz Pharmaceuticals PLC (JAZZ)

Debt-to-capital ratio

		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
Long-term debt	US$ in thousands	5,107,990	5,110,760	5,686,650	5,689,660	5,693,340	5,695,810	5,990,000	5,992,870	6,018,940	6,247,290	6,489,320	1,853,030	1,848,520	1,843,680	2,069,670	1,576,980	1,573,870	1,570,780	1,567,840	1,565,280
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
Debt-to-capital ratio		0.58	0.59	0.62	0.63	0.65	0.67	0.65	0.62	0.60	0.61	0.61	0.33	0.34	0.35	0.40	0.36	0.34	0.34	0.34	0.36

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $5,107,990K ÷ ($5,107,990K + $3,737,000K)
= 0.58

The debt-to-capital ratio of Jazz Pharmaceuticals plc has shown a gradual decrease over the past eight quarters, from 0.65 in Q4 2022 to 0.60 in Q4 2023. This indicates that the company is relying less on debt financing relative to its total capital structure.

A decreasing trend in the debt-to-capital ratio can suggest improved financial health and reduced financial risk for the company. It signifies that Jazz Pharmaceuticals is relying less on debt to finance its operations and investments, potentially leading to lower interest expenses and improved debt repayment capabilities.

The company's ability to lower its debt-to-capital ratio may indicate effective capital management strategies and prudent financial decision-making. It could also reflect a positive perception by lenders and investors regarding Jazz Pharmaceuticals' creditworthiness and stability.

Overall, the decreasing debt-to-capital ratio trend for Jazz Pharmaceuticals plc is a positive indicator of its financial strength and management's ability to maintain a healthy balance between debt and equity in its capital structure.