Vertex Pharmaceuticals Inc (VRTX)

Current 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
Total current assets	US$ in thousands	14,144,200	14,695,800	13,872,900	12,965,700	13,234,800	12,271,000	11,503,500	10,361,300	9,560,600	8,852,540	8,457,510	8,539,310	8,133,400	7,458,460	6,694,320	5,446,400	4,822,830	4,777,090	4,710,970	4,183,040
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
Current ratio		3.99	4.08	4.14	4.28	4.83	4.70	4.50	4.75	4.46	4.62	4.61	4.39	4.33	3.72	3.72	3.54	3.61	3.44	3.74	3.78

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 been trending downwards over the past eight quarters. It decreased from 4.83 in Q4 2022 to 3.99 in Q4 2023. This declining trend may indicate a potential decrease in short-term liquidity or an increase in current liabilities relative to current assets. Despite the decline, the current ratio has remained above 2, which generally suggests that the company has a strong ability to cover its short-term obligations with its current assets. However, monitoring this trend over time is crucial to ensure that the company maintains a healthy liquidity position.