Vertex Pharmaceuticals Inc (VRTX)

Quick ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cash	US$ in thousands	4,569,600	5,239,200	4,580,100	9,158,000	10,369,100	11,110,200	10,151,100	9,289,900	10,504,000	9,171,500	8,702,200	7,600,100	6,795,000	6,275,700	6,063,700	6,304,300	5,988,200	5,358,090	4,831,330	3,593,410
Short-term investments	US$ in thousands	1,582,900	1,318,700	1,246,000	1,056,700	895,200	864,400	1,137,800	1,272,300	391,300	722,000	622,300	793,300	960,800	903,951	798,410	763,124	866,491	1,105,650	838,764	762,162
Receivables	US$ in thousands	1,609,400	1,750,600	1,656,100	1,793,200	1,563,400	1,538,700	1,556,200	1,547,800	1,442,200	1,385,200	1,332,900	1,292,800	1,136,800	1,100,370	929,142	977,551	885,352	791,917	791,768	845,269
Total current liabilities	US$ in thousands	3,564,600	3,973,100	3,547,200	3,795,900	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
Quick ratio		2.18	2.09	2.11	3.16	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

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, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations using its most liquid assets. A higher quick ratio indicates a stronger liquidity position.

For Vertex Pharmaceuticals Inc, the quick ratio has shown a generally increasing trend from March 2020 to December 2024, starting at 3.38 and reaching its peak at 4.50. This suggests an improvement in the company's ability to cover its current liabilities with its quick assets over the period analyzed.

However, there was a slight decrease in the quick ratio towards the end of the period, dropping to 2.18 by December 31, 2024. This decline may indicate a potential decrease in liquidity or an increase in short-term liabilities that may need further monitoring.

Overall, Vertex Pharmaceuticals Inc has maintained a strong quick ratio above 1 throughout the period, indicating a healthy liquidity position and the ability to meet its short-term obligations comfortably.