Vertex Pharmaceuticals Inc (VRTX)

Number of days of payables

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Payables turnover		7.38	7.52	8.52	7.46	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
Number of days of payables	days	49.49	48.56	42.85	48.95	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

December 31, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 7.38
= 49.49

The number of days of payables for Vertex Pharmaceuticals Inc has shown some fluctuations over the indicated periods. The company's payables turnover, as measured by the number of days it takes to pay its suppliers, has varied between a low of 22.83 days on September 30, 2022, to a high of 60.62 days on September 30, 2023.

On average, Vertex Pharmaceuticals Inc takes around 40 days to pay its payables, with periodic deviations from this average. The trend indicates some volatility in the company's payment schedules to suppliers, potentially influenced by factors such as changes in procurement strategies, vendor negotiations, cash flow management, and operational requirements.

Monitoring the number of days of payables can be useful in assessing the company's liquidity position, efficiency in managing working capital, and relationships with suppliers. A decreasing trend in days payables may suggest a more aggressive payment strategy or potential cash flow constraints, whereas an increasing trend could indicate improved cash management or extended supplier payment terms.