Vertex Pharmaceuticals Inc (VRTX)

Payables turnover

		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
Cost of revenue (ttm)	US$ in thousands	2,443,200	2,263,400	2,217,100	2,123,000	2,076,000	2,028,752	1,927,253	1,872,794	1,796,200	1,656,692	1,592,724	1,546,407	1,506,756	1,472,101	1,405,173	1,321,091	1,218,473	1,142,687	1,087,258	1,036,763
Payables	US$ in thousands	364,900	375,900	363,000	323,200	303,900	126,900	198,000	173,600	195,000	127,863	127,534	127,839	155,100	107,786	101,451	100,703	87,610	92,528	77,045	82,262
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

December 31, 2023 calculation

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

The payables turnover ratio for Vertex Pharmaceuticals, Inc. has shown a fluctuating trend over the past quarters. In Q4 2023, the payables turnover ratio stood at 3.46, which indicates that the company's payables turnover slowed down compared to the previous quarter. This may suggest that the company took longer to pay off its suppliers during this period.

Looking back at the trend, despite the recent decrease, the payables turnover ratio has been relatively stable around the range of 3 to 5 in the past quarters. However, there was a significant spike in Q3 2022 when the ratio reached 8.23, indicating that the company was able to manage and settle its payables more efficiently during that specific period.

Overall, the payables turnover ratio for Vertex Pharmaceuticals, Inc. reflects the company's ability to manage its accounts payable effectively, with some fluctuations observed over the quarters. The company should continue monitoring this ratio to ensure timely payment to suppliers while maintaining a balance between cash flow and liquidity management.