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.
Peer comparison
Dec 31, 2023