Vertex Pharmaceuticals Inc (VRTX)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	US$ in thousands	4,569,600	10,369,100	10,504,000	6,795,000	5,988,200
Short-term investments	US$ in thousands	1,582,900	895,200	391,300	960,800	866,491
Receivables	US$ in thousands	1,609,400	1,563,400	1,442,200	1,136,800	885,352
Total current liabilities	US$ in thousands	3,564,600	3,547,400	2,742,100	2,142,000	1,877,500
Quick ratio		2.18	3.62	4.50	4.15	4.12

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($4,569,600K + $1,582,900K + $1,609,400K) ÷ $3,564,600K
= 2.18

The quick ratio of Vertex Pharmaceuticals Inc has shown a generally strong trend over the past five years, with values consistently above 1. This indicates that the company has a healthy ability to cover its short-term liabilities with its most liquid assets. The ratio has increased steadily from 4.12 in December 2020 to 4.50 in December 2022, reaching its peak during that period. However, there was a notable drop in the quick ratio to 3.62 in December 2023, followed by a further decrease to 2.18 in December 2024. This decline may suggest a potential decrease in the company's ability to meet its short-term obligations using its quick assets alone. It would be important for Vertex Pharmaceuticals Inc to carefully monitor this trend and assess its liquidity position to ensure it can effectively manage its current liabilities in the future.