Vertex Pharmaceuticals Inc (VRTX)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	10,369,100	11,110,200	10,151,100	9,289,900	10,504,000	9,171,500	8,702,200	7,600,100	6,795,000	6,275,700	6,063,700	6,304,300	5,988,200	5,358,090	4,831,330	3,593,410	3,109,300	3,397,940	3,294,680	2,893,880
Short-term investments	US$ in thousands	895,200	864,400	1,137,800	1,272,300	391,300	722,000	622,300	793,300	960,800	903,951	798,410	763,124	866,491	1,105,650	838,764	762,162	698,972	598,390	656,538	584,150
Total current liabilities	US$ in thousands	3,547,400	3,599,400	3,352,100	3,026,200	2,742,100	2,609,300	2,556,200	2,180,200	2,142,000	1,914,260	1,836,450	1,944,050	1,877,500	2,004,030	1,798,640	1,538,750	1,334,830	1,388,890	1,259,220	1,106,470
Cash ratio		3.18	3.33	3.37	3.49	3.97	3.79	3.65	3.85	3.62	3.75	3.74	3.64	3.65	3.23	3.15	2.83	2.85	2.88	3.14	3.14

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($10,369,100K + $895,200K) ÷ $3,547,400K
= 3.18

The cash ratio of Vertex Pharmaceuticals, Inc. has shown a generally decreasing trend throughout the quarters of 2022 and 2023. The ratio was highest in Q4 2022 at 4.13 and has since declined to 3.34 in Q4 2023. This indicates that the company's ability to cover its current liabilities solely with its cash and cash equivalents has decreased over time. While the company still maintains a healthy cash ratio above 1, signifying a strong liquidity position, the downward trend suggests a potential need to monitor the management of cash resources and working capital efficiency going forward.