Vertex Pharmaceuticals Inc (VRTX)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	2,443,200	2,076,000	1,796,200	1,557,980	1,256,030
Payables	US$ in thousands	364,900	303,900	195,000	155,100	87,610
Payables turnover		6.70	6.83	9.21	10.05	14.34

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $2,443,200K ÷ $364,900K
= 6.70

The payables turnover ratio for Vertex Pharmaceuticals, Inc. has shown a declining trend over the past five years, decreasing from 6.25 in 2019 to 3.46 in 2023. This indicates that the company is taking longer to pay off its suppliers in more recent years. A decreasing payables turnover ratio can suggest potential liquidity issues or changes in the company's payment practices. It is important for Vertex Pharmaceuticals to closely monitor and manage its payables turnover to ensure effective cash flow management and maintain good relationships with its suppliers.