Vertex Pharmaceuticals Inc (VRTX)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 6.70 | 6.83 | 9.21 | 10.05 | 14.34 | |
| Number of days of payables | days | 54.51 | 53.43 | 39.63 | 36.34 | 25.46 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 6.70
= 54.51
The number of days of payables for Vertex Pharmaceuticals, Inc. has been on an increasing trend over the past five years. The company took approximately 105.52 days to pay its trade payables as of December 31, 2023, which is higher compared to 102.68 days in 2022 and 78.72 days in 2021. This indicates that Vertex Pharmaceuticals is taking longer to settle its outstanding payables to suppliers.
The increase in the number of days of payables may suggest that the company is taking advantage of favorable credit terms provided by its suppliers or facing challenges in managing its cash flows effectively. A higher number of days of payables can positively impact the company's cash conversion cycle and working capital management in the short term, but it may also strain relationships with suppliers in the long run if not managed carefully.
Overall, monitoring the trend in the number of days of payables can provide insights into Vertex Pharmaceuticals' payment practices, financial health, and efficiency in managing its relationships with suppliers.
Peer comparison
Dec 31, 2023