Vertex Pharmaceuticals Inc (VRTX)

Number of days of payables

		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
Payables turnover		6.70	6.02	6.11	6.57	6.83	15.99	9.73	10.79	9.21	12.96	12.49	12.10	9.71	13.66	13.85	13.12	13.91	12.35	14.11	12.60
Number of days of payables	days	54.51	60.62	59.76	55.57	53.43	22.83	37.50	33.83	39.63	28.17	29.23	30.17	37.57	26.72	26.35	27.82	26.24	29.56	25.86	28.96

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 shown a fluctuating trend over the past eight quarters. In Q4 2023, the company took an average of 105.52 days to pay its suppliers, which decreased from the previous quarter's 116.52 days. This indicates an improvement in the company's ability to settle its payables more efficiently.

Comparing Q4 2023 to Q1 2022, where the number of days of payables was 66.16 days, there has been a noticeable increase in the time taken to pay suppliers. This suggests a potential slowdown in the company's payment processing or a change in supplier terms.

It is essential for Vertex Pharmaceuticals to manage its payables effectively to maintain good relationships with suppliers while optimizing cash flow. The company should continue monitoring and analyzing its payables turnover to ensure timely payments and sustainable financial operations.