Vertex Pharmaceuticals Inc (VRTX)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $17,580,400K
= 0.00
The debt-to-equity ratio of Vertex Pharmaceuticals, Inc. has shown a decreasing trend over the past five years, indicating a conservative approach to financing its operations. The ratio was at 0.02 as of Dec 31, 2023, down from 0.03 in 2022, 0.06 in 2021, 0.07 in 2020, and 0.09 in 2019.
A lower debt-to-equity ratio often signifies that the company relies less on debt financing and has a strong equity base to support its operations and growth. It suggests that Vertex Pharmaceuticals has a healthier financial structure with a lower level of financial risk associated with debt obligations.
The gradual decline in the debt-to-equity ratio could indicate that the company is effectively managing its debt levels, possibly by paying down debt, generating higher profits, or raising additional equity capital. Overall, the decreasing trend in the debt-to-equity ratio for Vertex Pharmaceuticals, Inc. reflects a positive financial position and prudent financial management.
Peer comparison
Dec 31, 2023