Jazz Pharmaceuticals PLC (JAZZ)

Financial leverage ratio

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Total assets US$ in thousands 12,012,300 12,255,700 11,361,900 11,327,100 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
Total stockholders’ equity US$ in thousands 4,093,760 4,171,070 3,762,600 3,696,460 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
Financial leverage ratio 2.93 2.94 3.02 3.06 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

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 fluctuations over the periods from March 31, 2020, to December 31, 2024. The ratio started at 1.86 in March 2020, indicating a moderate level of leverage, and increased gradually to 3.50 by June 30, 2022. This significant increase in leverage suggests a higher proportion of debt in the company's capital structure.

Subsequently, the financial leverage ratio fluctuated between 3.50 and 2.93 until December 31, 2024. This level of financial leverage indicates that Jazz Pharmaceuticals PLC is relying more on debt to finance its operations and growth opportunities. A higher financial leverage ratio signifies a higher financial risk due to increased debt obligations, which can impact the company's financial stability and flexibility.

It is essential for Jazz Pharmaceuticals PLC to carefully manage its debt levels and ensure that the increased leverage does not hinder its ability to meet its financial obligations or pursue future investments. Monitoring the financial leverage ratio over time can provide insights into the company's capital structure and financial risk profile, aiding stakeholders in assessing the company's overall financial health.