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Jazz Pharmaceuticals (Jazz Pharmaceuticals) Gross Margin % : 89.40% (As of Dec. 2023)


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What is Jazz Pharmaceuticals Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. Jazz Pharmaceuticals's Gross Profit for the three months ended in Dec. 2023 was $905 Mil. Jazz Pharmaceuticals's Revenue for the three months ended in Dec. 2023 was $1,012 Mil. Therefore, Jazz Pharmaceuticals's Gross Margin % for the quarter that ended in Dec. 2023 was 89.40%.

Warning Sign:

Jazz Pharmaceuticals PLC gross margin has been in long-term decline. The average rate of decline per year is -1.9%.


The historical rank and industry rank for Jazz Pharmaceuticals's Gross Margin % or its related term are showing as below:

JAZZ' s Gross Margin % Range Over the Past 10 Years
Min: 85.23   Med: 92.59   Max: 94.08
Current: 88.64


During the past 13 years, the highest Gross Margin % of Jazz Pharmaceuticals was 94.08%. The lowest was 85.23%. And the median was 92.59%.

JAZZ's Gross Margin % is ranked better than
83.54% of 735 companies
in the Biotechnology industry
Industry Median: 59.4 vs JAZZ: 88.64

Jazz Pharmaceuticals had a gross margin of 89.40% for the quarter that ended in Dec. 2023 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for Jazz Pharmaceuticals was -1.90% per year.


Jazz Pharmaceuticals Gross Margin % Historical Data

The historical data trend for Jazz Pharmaceuticals's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Jazz Pharmaceuticals Gross Margin % Chart

Jazz Pharmaceuticals Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 94.08 93.70 85.76 85.23 88.64

Jazz Pharmaceuticals Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 82.78 85.59 89.81 89.49 89.40

Competitive Comparison of Jazz Pharmaceuticals's Gross Margin %

For the Biotechnology subindustry, Jazz Pharmaceuticals's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Jazz Pharmaceuticals's Gross Margin % Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Jazz Pharmaceuticals's Gross Margin % distribution charts can be found below:

* The bar in red indicates where Jazz Pharmaceuticals's Gross Margin % falls into.



Jazz Pharmaceuticals Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

Jazz Pharmaceuticals's Gross Margin for the fiscal year that ended in Dec. 2023 is calculated as

Gross Margin % (A: Dec. 2023 )=Gross Profit (A: Dec. 2023 ) / Revenue (A: Dec. 2023 )
=3398.6 / 3834.204
=(Revenue - Cost of Goods Sold) / Revenue
=(3834.204 - 435.577) / 3834.204
=88.64 %

Jazz Pharmaceuticals's Gross Margin for the quarter that ended in Dec. 2023 is calculated as


Gross Margin % (Q: Dec. 2023 )=Gross Profit (Q: Dec. 2023 ) / Revenue (Q: Dec. 2023 )
=904.7 / 1011.935
=(Revenue - Cost of Goods Sold) / Revenue
=(1011.935 - 107.243) / 1011.935
=89.40 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


Jazz Pharmaceuticals  (NAS:JAZZ) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

Jazz Pharmaceuticals had a gross margin of 89.40% for the quarter that ended in Dec. 2023 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


Jazz Pharmaceuticals Gross Margin % Related Terms

Thank you for viewing the detailed overview of Jazz Pharmaceuticals's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Jazz Pharmaceuticals (Jazz Pharmaceuticals) Business Description

Traded in Other Exchanges
Address
Waterloo Road, Fifth Floor, Waterloo Exchange, Dublin, IRL, D04 E5W7
Jazz Pharmaceuticals is an Ireland-domiciled biopharmaceutical firm focused primarily on treatments for sleeping disorders and oncology. Jazz has nine approved drugs across neuroscience and oncology indications; its portfolio includes Xyrem and Xywav for narcolepsy, Zepzelca for the treatment of metastatic small cell lung cancer, Rylaze for acute lymphoblastic leukemia, and Vyxeos for acute myeloid leukemia. In May 2021, Jazz acquired GW Pharmaceuticals and gained its leading product, Epidiolex for the treatment of severe, rare forms of epilepsy.
Executives
Jennifer E. Cook director C/O DENALI THERAPEUTICS INC., 151 OYSTER POINT BLVD., 2ND FLOOR, SOUTH SAN FRANCISCO CA 94080
Mark Douglas Smith director C/O TELADOC HEALTH, INC., 2 MANHATTANVILLE ROAD, SUITE 203, PURCHASE NY 10577
Neena M Patil officer: SVP, General Counsel JAZZ PHARMACEUTICALS, 3170 PORTER DRIVE, PALO ALTO CA 94304
Patricia Carr officer: VP, Finance& PAO JAZZ PHARMACEUTICALS, 3170 PORTER DRIVE, PALO ALTO CA 94304
Heather Ann Mcsharry director C/O JAZZ PHARMACEUTICALS PLC, 5TH FL, WATERLOO EXCHANGE, WATERLOO RD, DUBLIN L2 4 L2
Patrick G Enright director, 10 percent owner CO LONGITUDE CAPITAL PARTNERS LLC, 800 EL CAMINO REAL, SUITE 220, MENLO PARK CA 94025
Norbert G Riedel director BAXTER INTERNATIONAL INC, ONE BAXTER PKWY DF2-1W, DEERFIELD IL 60015
Catherine A. Sohn director C/O JAZZ PHARMACEUTICALS PLC, 5TH FL, WATERLOO EXCHANGE, WATERLOO RD, DUBLIN L2 4 L2
Rick E Winningham director 901 GATEWAY BOULEVARD, SOUTH SAN FRANCISCO CA 94080
Peter Gray director C/O JAZZ PHARMACEUTICALS PLC, 5TH FL, WATERLOO EXCHANGE, WATERLOO RD, DUBLIN L2 4 L2
Anne Oriordan director HOUSE 120, TAI HANG HAU VILLAGE, LOBSTER BAY, CLEARWATER BAY K3 HK
Kenneth W O'keefe director C/O BEECKEN PETTY O'KEEFE & COMPANY, 131 S. DEARBORN STREET, SUITE 2800, CHICAGO IL 60603
Mary Elizabeth Henderson officer: SVP, Technical Operations 3170 PORTER DRIVE, PALO ALTO CA 94304
Renee D Gala officer: EVP & CFO 901 GATEWAY BLVD, SOUTH SAN FRANCISCO CA 94080
Kim Sablich officer: EVP & GM, North America C/O MYOVANT SCIENCES INC., 2000 SIERRA POINT PARKWAY, BRISBANE CA 94005

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