Vertex Pharmaceuticals Inc (VRTX)

Quick 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
Cash	US$ in thousands	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	3,109,300	3,397,940	3,294,680	2,893,880
Short-term investments	US$ in thousands	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	698,972	598,390	656,538	584,150
Receivables	US$ in thousands	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	633,518	443,315	464,900	438,297
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
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

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 been consistently strong over the past eight quarters, ranging from 3.78 to 4.66. The quick ratio measures the company's ability to meet its short-term liabilities with its most liquid assets, excluding inventory. A quick ratio above 1 indicates that the company has sufficient liquid assets to cover its current liabilities.

Vertex Pharmaceuticals, Inc.'s quick ratio has shown a decreasing trend from Q1 2022 to Q4 2023, indicating a slight decrease in the relative liquidity of the company over this period. However, even the lowest quick ratio of 3.78 in Q4 2023 still reflects a strong ability to meet short-term obligations without relying on inventory liquidation.

Overall, Vertex Pharmaceuticals, Inc.'s consistent quick ratio above 3.0 indicates a healthy liquidity position, providing a cushion to meet its short-term financial obligations efficiently. Investors and analysts typically consider a quick ratio above 1.0 as favorable, and Vertex Pharmaceuticals, Inc.'s consistently high quick ratios suggest a robust financial standing in terms of short-term liquidity management.