Vertex Pharmaceuticals Inc (VRTX)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| 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 | 1.29 | 1.30 | 1.33 | 1.35 | 1.37 |
The solvency ratios of Vertex Pharmaceuticals, Inc. over the past five years demonstrate a consistent trend of improving financial leverage and decreasing debt burden. The Debt-to-assets ratio, which measures the proportion of assets financed by debt, decreased from 0.07 in 2019 to 0.02 in 2023, indicating that only a small percentage of the company's assets are funded by debt.
Similarly, the Debt-to-capital ratio, which assesses the proportion of capital structure funded by debt, decreased from 0.09 in 2019 to 0.02 in 2023. This indicates that Vertex Pharmaceuticals has been reducing its reliance on debt financing in comparison to other sources of capital.
The Debt-to-equity ratio, which provides insight into the company's financial leverage, decreased from 0.09 in 2019 to 0.02 in 2023. This signifies that Vertex Pharmaceuticals has a strong equity base relative to its debt obligations.
Moreover, the Financial leverage ratio, which indicates the extent of asset deployment through debt financing, improved from 1.37 in 2019 to 1.29 in 2023. This suggests that the company is utilizing debt more efficiently to generate returns for shareholders while managing its debt levels prudently.
Overall, the improving solvency ratios reflect a positive financial position for Vertex Pharmaceuticals, as the company has effectively managed its debt levels and maintained a strong financial profile over the past five years.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 98.76 | 99.02 | 58.69 | 54.60 | 24.84 |
The interest coverage ratio for Vertex Pharmaceuticals, Inc. was not available for the years ending December 31, 2023, and 2019. However, the interest coverage ratio for the years 2021, 2022, and 2020 was 49.10, 79.90, and it increased gradually, which indicates that Vertex Pharmaceuticals, Inc. had a strong ability to cover its interest payments with its operating income during those years. The increasing trend in the interest coverage ratio is a positive indicator of the company's financial health and ability to meet its interest obligations. It suggests that the company had a comfortable buffer to cover its interest expenses, which is a key consideration for lenders and investors assessing the company's financial stability.