Vertex Pharmaceuticals Inc (VRTX)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 3.62 | 3.75 | 3.83 | 4.00 | 4.50 | 4.32 | 4.17 | 4.44 | 4.15 | 4.33 | 4.24 | 4.14 | 4.12 | 3.62 | 3.59 | 3.38 | 3.33 | 3.20 | 3.51 | 3.54 |
| 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 |
Vertex Pharmaceuticals, Inc. has exhibited consistent and strong liquidity positions over the past eight quarters based on its liquidity ratios. The current ratio has ranged from 3.99 to 4.28, indicating that the company has more than enough current assets to cover its current liabilities. The company's quick ratio, which excludes inventory from current assets, also demonstrates a healthy liquidity position ranging from 3.78 to 4.11. This suggests that Vertex Pharmaceuticals, Inc. is able to meet its short-term obligations without relying on inventory.
Additionally, the cash ratio, which measures the company's ability to cover its current liabilities with its cash and cash equivalents, has shown stability between 3.34 and 3.60. This implies that the company holds a significant amount of cash compared to its current liabilities, indicating a strong ability to meet these obligations using its readily available funds.
Overall, Vertex Pharmaceuticals, Inc. has maintained solid liquidity positions over the analyzed period, highlighting the company's ability to meet its short-term financial obligations efficiently.
See also:
Vertex Pharmaceuticals Inc Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 conversion cycle | days | 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 | 80.25 | 67.52 | 71.81 | 68.66 |
The cash conversion cycle of Vertex Pharmaceuticals, Inc. has shown fluctuations over the past eight quarters. The company's cash conversion cycle peaked at 165.94 days in Q4 2023 and reached a low of 111.89 days in Q4 2022. The trend indicates that the company took longer to convert its investment in inventory into cash during Q4 2023 compared to previous quarters.
A higher cash conversion cycle suggests that Vertex Pharmaceuticals, Inc. is taking longer to sell its inventory and collect cash from customers, potentially tying up more funds in the operating cycle. Conversely, a shorter cash conversion cycle indicates that the company is managing its inventory effectively and collecting cash more efficiently.
It is important for Vertex Pharmaceuticals, Inc. to closely monitor its cash conversion cycle to ensure optimal working capital management and liquidity. Any improvements in inventory management, sales processes, or accounts receivable collection could help reduce the cash conversion cycle and enhance the company's overall financial performance.