Vertex Pharmaceuticals Inc (VRTX)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	144.45	132.47	119.51	113.25	110.37	111.06	99.35	92.00	80.98	69.84	69.64	66.05	71.75	73.47	73.70	70.54	68.02	60.86	56.94	51.69
Days of sales outstanding (DSO)	days	53.48	60.38	58.78	64.68	58.21	58.52	60.14	61.78	59.39	58.59	58.78	59.93	55.33	56.83	51.21	56.14	52.57	48.70	54.04	64.77
Number of days of payables	days	49.49	48.56	42.85	48.95	54.51	60.62	59.76	55.57	53.43	22.83	37.50	33.83	39.63	28.17	29.23	30.17	37.57	26.72	26.35	27.82
Cash conversion cycle	days	148.44	144.29	135.44	128.98	114.07	108.97	99.73	98.21	86.94	105.61	90.92	92.15	87.46	102.13	95.69	96.51	83.02	82.84	84.63	88.64

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 144.45 + 53.48 – 49.49
= 148.44

The cash conversion cycle (CCC) of Vertex Pharmaceuticals Inc has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The CCC started at 88.64 days in March 2020, decreased to 82.84 days by September 2020, and then slightly increased to 87.46 days by December 2021.

From March 31, 2022, to September 30, 2023, the CCC remained relatively stable, ranging from 86.94 days to 108.97 days. However, there was a notable increase in the CCC from December 31, 2023, to December 31, 2024, where it went from 114.07 days to 148.44 days.

The trend in the CCC indicates that Vertex Pharmaceuticals Inc's cash is being tied up in the operating cycle for longer periods, which could potentially impact the company's liquidity and working capital management. It is important for the company to closely monitor and manage its CCC to ensure efficient use of cash resources and optimize its working capital performance.