Vertex Pharmaceuticals Inc (VRTX)

Receivables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	10,994,400	9,803,200	8,863,500	7,499,400	6,135,450
Receivables	US$ in thousands	1,609,400	1,563,400	1,442,200	1,136,800	885,352
Receivables turnover		6.83	6.27	6.15	6.60	6.93

December 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $10,994,400K ÷ $1,609,400K
= 6.83

The receivables turnover ratio for Vertex Pharmaceuticals Inc has been relatively stable over the past five years. It decreased slightly from 6.93 in December 2020 to 6.60 in December 2021 before further declining to 6.15 in December 2022. However, there was a slight improvement in the ratio to 6.27 in December 2023, followed by a noticeable increase to 6.83 in December 2024.

This performance indicates that Vertex Pharmaceuticals Inc is efficiently managing its accounts receivable, with a generally consistent ability to convert its credit sales into cash within a certain timeframe. The company's ability to collect outstanding receivables appears to have improved significantly by the end of 2024, suggesting effective credit control and collection efforts. However, further analysis and comparison with industry benchmarks may provide a more comprehensive assessment of the company's receivables management efficiency.