Vertex Pharmaceuticals Inc (VRTX)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 14,144,200 | 13,234,800 | 9,560,600 | 8,133,400 | 4,822,830 |
| Total current liabilities | US$ in thousands | 3,547,400 | 2,742,100 | 2,142,000 | 1,877,500 | 1,334,830 |
| Current ratio | 3.99 | 4.83 | 4.46 | 4.33 | 3.61 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $14,144,200K ÷ $3,547,400K
= 3.99
The current ratio of Vertex Pharmaceuticals, Inc. has exhibited a generally positive trend over the past five years. The company's current ratio stood at 3.61 in 2019 and has since increased consistently, reaching 4.46 in 2021 before slightly decreasing to 3.99 in 2023.
A current ratio above 1 indicates that Vertex Pharmaceuticals, Inc. has more than enough current assets to cover its current liabilities, reflecting a strong ability to meet its short-term obligations. The current ratios ranging from 3.99 to 4.83 in the last three years suggest that the company has maintained a healthy liquidity position, providing a buffer to handle any short-term financial challenges.
Overall, the current ratio analysis indicates that Vertex Pharmaceuticals, Inc. has maintained a robust liquidity position in recent years, which is essential for sustaining operations, meeting obligations, and pursuing growth opportunities.
Peer comparison
Dec 31, 2023