Jazz Pharmaceuticals PLC (JAZZ)

Debt-to-equity ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
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
Debt-to-equity ratio		1.37	1.85	1.52	0.51	0.51

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $5,107,990K ÷ $3,737,000K
= 1.37

The debt-to-equity ratio of Jazz Pharmaceuticals plc has shown fluctuations over the past five years.

In 2019, the company had a relatively low debt-to-equity ratio of 0.52, indicating a conservative capital structure with higher ownership by equity holders compared to creditors. This suggests a lower financial risk for the company during that period.

However, over the next two years, the debt-to-equity ratio increased significantly to 1.53 in 2021 and remained at the same level in 2023. This indicates a higher reliance on debt financing relative to equity, potentially increasing the company's financial risk and leverage.

The highest debt-to-equity ratio was recorded in 2022 at 1.86, suggesting a substantial increase in debt compared to equity. This could be a cause for concern as higher debt levels may lead to increased interest payments, impacting profitability and financial stability.

Overall, the trend in Jazz Pharmaceuticals plc's debt-to-equity ratio shows a shift towards greater reliance on debt financing in recent years, which may indicate a strategy to fund growth or acquisitions. Investors and stakeholders should carefully monitor this ratio to assess the company's financial health and risk profile.