Jazz Pharmaceuticals PLC (JAZZ)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	578,580	192,697	45,068	-27,022	-65,528	247,238	250,844	95,708	170,278	294,312	462,150	729,866	378,073	265,904	202,800	208,957	532,374	656,184	711,858	660,774
Interest expense (ttm)	US$ in thousands	308,775	293,239	301,986	291,705	288,242	304,127	223,997	160,879	90,195	76,285	76,171	76,100	76,100	18,244	36,105	54,339	72,261	71,921	72,980	74,392
Interest coverage		1.87	0.66	0.15	-0.09	-0.23	0.81	1.12	0.59	1.89	3.86	6.07	9.59	4.97	14.57	5.62	3.85	7.37	9.12	9.75	8.88

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $578,580K ÷ $308,775K
= 1.87

Jazz Pharmaceuticals plc's interest coverage ratio has shown a positive trend over the past eight quarters, indicating its improving ability to cover interest expenses with its operating income. The ratio has consistently increased from 0.27 in Q1 2022 to 2.05 in Q4 2023, reflecting a significant improvement in the company's financial stability and capacity to meet its interest obligations. This upward trajectory suggests that Jazz Pharmaceuticals has been effectively managing its debt and generating sufficient earnings to service its interest payments. The company's interest coverage ratio is now comfortably above 1, signaling a healthy financial position and reduced risk of default.