Vertex Pharmaceuticals Inc (VRTX)
Debt-to-equity ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 16,409,600 | 15,630,900 | 14,774,700 | 18,546,600 | 17,580,400 | 16,512,800 | 15,470,200 | 14,432,300 | 13,912,700 | 13,029,600 | 11,933,500 | 10,907,000 | 10,100,000 | 9,530,800 | 9,196,400 | 8,980,300 | 8,686,800 | 8,133,470 | 7,519,240 | 6,461,650 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $16,409,600K
= 0.00
The debt-to-equity ratio of Vertex Pharmaceuticals Inc has been consistently reported as 0.00 across multiple financial periods from March 31, 2020, to December 31, 2024. This indicates that the company has maintained a debt-free capital structure during this period.
A debt-to-equity ratio of 0.00 means that the company has no debt in relation to its equity. A lower debt-to-equity ratio is generally viewed positively as it signifies lower financial risk and indicates that the company is relying more on equity financing rather than debt to fund its operations and growth.
In the case of Vertex Pharmaceuticals Inc, a consistent debt-to-equity ratio of 0.00 suggests a conservative financial approach, with the company possibly financing its activities primarily through retained earnings or equity issuance. This stable ratio may indicate a strong financial position, less financial leverage, and potentially lower interest expenses.
However, it is essential to consider that a debt-free capital structure may not always be the most optimal strategy for all companies as some level of debt can be used to leverage growth opportunities and tax benefits. Nonetheless, the consistent 0.00 debt-to-equity ratio for Vertex Pharmaceuticals Inc reflects a financial position with no reported debt levels relative to its equity during the analyzed period.
Peer comparison
Dec 31, 2024