Vertex Pharmaceuticals Inc (VRTX)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 10,369,100 | 10,504,000 | 6,795,000 | 5,988,200 | 3,109,300 |
| Short-term investments | US$ in thousands | 895,200 | 391,300 | 960,800 | 866,491 | 698,972 |
| Receivables | US$ in thousands | 1,563,400 | 1,442,200 | 1,136,800 | 885,352 | 633,518 |
| Total current liabilities | US$ in thousands | 3,547,400 | 2,742,100 | 2,142,000 | 1,877,500 | 1,334,830 |
| Quick ratio | 3.62 | 4.50 | 4.15 | 4.12 | 3.33 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($10,369,100K
+ $895,200K
+ $1,563,400K)
÷ $3,547,400K
= 3.62
The quick ratio of Vertex Pharmaceuticals, Inc. has shown a fluctuating trend over the past five years, ranging from 3.49 in 2019 to a high of 4.66 in 2022. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets, excluding inventory.
A quick ratio above 1 indicates that the company has an adequate level of liquid assets to cover its short-term liabilities. Vertex Pharmaceuticals' quick ratio has consistently remained well above 1 in all years analyzed, indicating a strong ability to meet its short-term obligations without relying heavily on inventory.
The decreasing trend observed from 2019 (3.49) to 2023 (3.78) suggests a slight decline in the company's liquidity position. However, the quick ratio values for all years are comfortably above the threshold of 1, indicating a healthy liquidity position. In particular, the significant increase in 2022 (4.66) showcases an improved ability to cover short-term obligations using highly liquid assets.
Overall, the quick ratio analysis suggests that Vertex Pharmaceuticals, Inc. has maintained a solid liquidity position over the years, with sufficient liquid assets to meet its short-term financial obligations.
Peer comparison
Dec 31, 2023