Jazz Pharmaceuticals PLC (JAZZ)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 11,393,400 | 11,204,100 | 11,260,500 | 11,047,100 | 10,835,300 | 10,384,700 | 11,200,100 | 11,768,900 | 12,298,600 | 12,478,200 | 13,213,000 | 6,756,470 | 6,535,900 | 6,291,960 | 6,066,500 | 5,215,300 | 5,538,900 | 5,527,850 | 5,488,660 | 5,280,240 |
| 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 |
| Financial leverage ratio | 3.05 | 3.21 | 3.19 | 3.31 | 3.51 | 3.78 | 3.50 | 3.26 | 3.10 | 3.17 | 3.20 | 1.78 | 1.79 | 1.86 | 1.93 | 1.86 | 1.78 | 1.81 | 1.84 | 1.93 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $11,393,400K ÷ $3,737,000K
= 3.05
The financial leverage ratio of Jazz Pharmaceuticals plc has been fluctuating over the past eight quarters, ranging from a low of 3.05 in Q4 2023 to a high of 3.78 in Q3 2022. A higher financial leverage ratio indicates a higher level of debt financing relative to equity, which can amplify returns but also increase financial risk.
The trend in Jazz Pharmaceuticals' financial leverage ratio appears to be declining from Q3 2022 to Q4 2023, suggesting a potential shift towards lower debt levels relative to equity. This trend may indicate a strategic effort to reduce financial risk and improve the company's financial stability.
However, it is important to note that the financial leverage ratio of 3.05 in Q4 2023 is still relatively high, indicating that Jazz Pharmaceuticals continues to rely significantly on debt financing to support its operations. Investors and stakeholders should monitor this ratio closely to assess the company's ability to manage its debt levels effectively and sustain its financial health.
Peer comparison
Dec 31, 2023