Jazz Pharmaceuticals PLC (JAZZ)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 12,012,300 | 11,393,400 | 10,835,300 | 12,298,600 | 6,535,900 |
| Total stockholders’ equity | US$ in thousands | 4,093,760 | 3,737,000 | 3,085,730 | 3,965,190 | 3,659,740 |
| Financial leverage ratio | 2.93 | 3.05 | 3.51 | 3.10 | 1.79 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $12,012,300K ÷ $4,093,760K
= 2.93
The financial leverage ratio of Jazz Pharmaceuticals PLC has shown an increasing trend over the period from December 31, 2020, to December 31, 2024. Starting at 1.79 in 2020, the ratio has steadily increased to 3.10 in 2021, 3.51 in 2022, and then slightly decreased to 3.05 in 2023 and 2.93 in 2024.
A financial leverage ratio above 1 indicates that the company relies more on debt financing than equity financing. The increasing trend over the years suggests that Jazz Pharmaceuticals PLC has been utilizing more debt to finance its operations and growth.
A higher financial leverage ratio can potentially indicate increased financial risk as the company has higher financial obligations to meet in the form of debt payments. It is essential for investors and stakeholders to closely monitor the trend in this ratio to assess the company's ability to manage its debt levels effectively and maintain financial stability.
Peer comparison
Dec 31, 2024