Vertex Pharmaceuticals Inc (VRTX)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.37 | 1.29 | 1.30 | 1.33 | 1.35 |
Vertex Pharmaceuticals Inc has consistently maintained a strong solvency position as indicated by its solvency ratios. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all remained at 0.00 for the years 2020 to 2024. This signifies that the company has not taken on any long-term debts relative to its total assets, capital, or equity during this period.
Additionally, the financial leverage ratio has been relatively stable, ranging from 1.29 to 1.37 from 2020 to 2024. This metric indicates that the company's financial leverage has been moderate, with a slight increase in leverage observed in 2024 compared to the previous years. Overall, Vertex Pharmaceuticals Inc's solvency ratios suggest a conservative approach to managing its long-term debt obligations and maintaining a healthy financial position.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | -7.61 | 98.76 | 99.02 | 58.69 | 54.60 |
The interest coverage ratio for Vertex Pharmaceuticals Inc has shown a positive trend over the years, indicating strong ability to meet its interest obligations. The ratio stood at 54.60 in December 31, 2020, and increased steadily to 58.69 in December 31, 2021, and further improved to 99.02 by December 31, 2022. This significant increase suggests that the company's earnings are more than sufficient to cover its interest expenses.
In the following year, the interest coverage ratio remained robust at 98.76 by December 31, 2023, demonstrating continued financial strength. However, there was a significant decline in the ratio to -7.61 by December 31, 2024, indicating that the company may be facing challenges in generating enough earnings to cover its interest payments.
Overall, Vertex Pharmaceuticals Inc's interest coverage ratio has shown positive performance over the years, except for a notable decrease in 2024. Investors and stakeholders may need to closely monitor the company's financial position and profitability to ensure sustainable operations and debt repayment capabilities.