Jazz Pharmaceuticals Gross Profit vs. Price To Earning

J7Z Stock  EUR 116.85  1.15  0.97%   
Based on Jazz Pharmaceuticals' profitability indicators, Jazz Pharmaceuticals plc may not be well positioned to generate adequate gross income at the moment. It has a very high risk of underperforming in January. Profitability indicators assess Jazz Pharmaceuticals' ability to earn profits and add value for shareholders.
For Jazz Pharmaceuticals profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Jazz Pharmaceuticals to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Jazz Pharmaceuticals plc utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Jazz Pharmaceuticals's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Jazz Pharmaceuticals plc over time as well as its relative position and ranking within its peers.
  
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Please note, there is a significant difference between Jazz Pharmaceuticals' value and its price as these two are different measures arrived at by different means. Investors typically determine if Jazz Pharmaceuticals is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Jazz Pharmaceuticals' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Jazz Pharmaceuticals plc Price To Earning vs. Gross Profit Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Jazz Pharmaceuticals's current stock value. Our valuation model uses many indicators to compare Jazz Pharmaceuticals value to that of its competitors to determine the firm's financial worth.
Jazz Pharmaceuticals plc is rated below average in gross profit category among its peers. It is rated below average in price to earning category among its peers . The ratio of Gross Profit to Price To Earning for Jazz Pharmaceuticals plc is about  188,133,617 . The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Jazz Pharmaceuticals' earnings, one of the primary drivers of an investment's value.

Jazz Price To Earning vs. Gross Profit

Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

Jazz Pharmaceuticals

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
2.88 B
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Price to Earnings ratio is typically used for current valuation of a company and is one of the most popular ratios that investors monitor daily. Holding a low PE stock is less risky because when a company's profitability falls, it is likely that earnings will also go down as well. In other words, if you start from a lower position, your downside risk is limited. There are also some investors who believe that low Price to Earnings ratio reflects the low pricing because a given company is in trouble. On the other hand, a higher PE ratio means that investors are paying more for each unit of profit.

Jazz Pharmaceuticals

P/E

 = 

Market Value Per Share

Earnings Per Share

 = 
15.29 X
Generally speaking, the Price to Earnings ratio gives investors an idea of what the market is willing to pay for the company's current earnings.

Jazz Price To Earning Comparison

Jazz Pharmaceuticals is currently under evaluation in price to earning category among its peers.

Jazz Pharmaceuticals Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Jazz Pharmaceuticals, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Jazz Pharmaceuticals will eventually generate negative long term returns. The profitability progress is the general direction of Jazz Pharmaceuticals' change in net profit over the period of time. It can combine multiple indicators of Jazz Pharmaceuticals, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Jazz Pharmaceuticals plc, a biopharmaceutical company, identifies, develops, and commercializes pharmaceutical products for various unmet medical needs in the United States, Europe, and internationally. Jazz Pharmaceuticals plc has licensing and collaboration agreements with ImmunoGen, Inc. Codiak BioSciences, Inc. Pfenex, Inc. and XL-protein GmbH. JAZZ PHARMACEUT operates under Biotechnology classification in Germany and is traded on Frankfurt Stock Exchange. It employs 1460 people.

Jazz Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Jazz Pharmaceuticals. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Jazz Pharmaceuticals position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Jazz Pharmaceuticals' important profitability drivers and their relationship over time.

Use Jazz Pharmaceuticals in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Jazz Pharmaceuticals position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Jazz Pharmaceuticals will appreciate offsetting losses from the drop in the long position's value.

Jazz Pharmaceuticals Pair Trading

Jazz Pharmaceuticals plc Pair Trading Analysis

The ability to find closely correlated positions to Jazz Pharmaceuticals could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Jazz Pharmaceuticals when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Jazz Pharmaceuticals - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Jazz Pharmaceuticals plc to buy it.
The correlation of Jazz Pharmaceuticals is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Jazz Pharmaceuticals moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Jazz Pharmaceuticals plc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Jazz Pharmaceuticals can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Jazz Pharmaceuticals position

In addition to having Jazz Pharmaceuticals in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Run Retail Thematic Idea Now

Retail
Retail Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Retail theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Retail Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Jazz Stock

When determining whether Jazz Pharmaceuticals plc offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Jazz Pharmaceuticals' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Jazz Pharmaceuticals Plc Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Jazz Pharmaceuticals Plc Stock:
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You can also try the Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
To fully project Jazz Pharmaceuticals' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Jazz Pharmaceuticals plc at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Jazz Pharmaceuticals' income statement, its balance sheet, and the statement of cash flows.
Potential Jazz Pharmaceuticals investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Jazz Pharmaceuticals investors may work on each financial statement separately, they are all related. The changes in Jazz Pharmaceuticals's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Jazz Pharmaceuticals's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.