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.