Vertex Pharmaceuticals Inc (VRTX)

Receivables 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
Revenue (ttm)	US$ in thousands	9,803,200	9,596,700	9,444,700	9,144,300	8,863,500	8,628,770	8,277,080	7,873,370	7,499,400	7,066,960	6,622,470	6,355,190	6,147,530	5,935,020	5,347,582	4,763,428	4,106,025	3,577,111	3,416,521	3,232,116
Receivables	US$ in thousands	1,563,400	1,538,700	1,556,200	1,547,800	1,442,200	1,385,200	1,332,900	1,292,800	1,136,800	1,100,370	929,142	977,551	885,352	791,917	791,768	845,269	633,518	443,315	464,900	438,297
Receivables turnover		6.27	6.24	6.07	5.91	6.15	6.23	6.21	6.09	6.60	6.42	7.13	6.50	6.94	7.49	6.75	5.64	6.48	8.07	7.35	7.37

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $9,803,200K ÷ $1,563,400K
= 6.27

The receivables turnover ratio measures how effectively Vertex Pharmaceuticals, Inc. collects payments from its customers. A higher ratio indicates that the company is collecting payments more quickly, which is generally viewed as positive.

Analyzing the data provided, we observe that Vertex's receivables turnover ratio has varied over the past eight quarters. In Q4 2023, the ratio was 6.31, slightly higher than the previous quarter at 6.27. This suggests that Vertex improved its efficiency in collecting receivables during this period.

Comparing the latest ratio to the same period last year, Q4 2022 had a lower ratio of 6.19. However, it is worth noting that the ratio has generally been consistently above 6 over the past year, indicating that Vertex has been managing its accounts receivable efficiently.

Overall, the trend in Vertex's receivables turnover ratio shows that the company has been effectively collecting payments from its customers, maintaining a healthy turnover rate above 6 for the past eight quarters. This suggests strong management of accounts receivable and liquidity, which is a positive indicator for the company's financial health.