Vertex Pharmaceuticals Inc (VRTX)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 17,580,400 | 13,912,700 | 10,100,000 | 8,686,800 | 6,085,200 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $17,580,400K)
= 0.00
The debt-to-capital ratio of Vertex Pharmaceuticals, Inc. has been declining over the past five years, indicating a decreasing reliance on debt to finance its operations in relation to its total capital structure.
In 2019, the ratio was 0.09, showing that 9% of the company's capital was funded by debt. This ratio decreased to 0.06 in 2020, further to 0.05 in 2021, and to 0.03 in 2022. As of December 31, 2023, the debt-to-capital ratio was at 0.02, demonstrating that only 2% of the company's capital was financed through debt.
The decreasing trend in the debt-to-capital ratio could indicate that Vertex Pharmaceuticals has been able to reduce its debt levels or increase its equity capital over the years. This may suggest improved financial stability and lower financial risk for the company as it becomes less dependent on debt financing.
Peer comparison
Dec 31, 2023