Vertex Pharmaceuticals Inc (VRTX)

Receivables turnover

		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
Revenue (ttm)	US$ in thousands	10,984,000	10,582,900	10,283,600	10,120,000	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
Receivables	US$ in thousands	1,609,400	1,750,600	1,656,100	1,793,200	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
Receivables turnover		6.82	6.05	6.21	5.64	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

December 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $10,984,000K ÷ $1,609,400K
= 6.82

The receivables turnover ratio of Vertex Pharmaceuticals Inc has displayed some variability over the analyzed period, ranging from a low of 5.64 to a high of 7.49. The ratio measures how effectively the company is managing its receivables by indicating how many times during a period the company collects its average accounts receivable balance.

A higher receivables turnover ratio typically indicates that the company is collecting its outstanding receivables more efficiently. In this case, Vertex Pharmaceuticals Inc generally maintains a moderate to high level of efficiency in collecting its receivables, with the ratio hovering around 6 to 7 times annually in recent periods.

It is important for the company to closely monitor this ratio as a significant increase or decrease could signal changes in the company's collection policies, customer creditworthiness, or overall operating efficiency. Management should strive to strike a balance between prompt collection of receivables and maintaining good customer relations.