Vertex Pharmaceuticals Inc (VRTX)

Financial leverage ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	22,730,200	21,726,200	20,349,200	18,974,200	18,150,900	16,706,400	15,582,200	14,256,100	13,432,500	12,618,700	12,221,700	12,115,100	11,751,800	11,301,600	10,216,400	8,893,200	8,318,460	7,514,550	7,033,470	6,543,110
Total stockholders’ equity	US$ in thousands	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	6,085,200	5,253,390	5,069,960	4,723,310
Financial leverage ratio		1.29	1.32	1.32	1.31	1.30	1.28	1.31	1.31	1.33	1.32	1.33	1.35	1.35	1.39	1.36	1.38	1.37	1.43	1.39	1.39

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $22,730,200K ÷ $17,580,400K
= 1.29

The financial leverage ratio for Vertex Pharmaceuticals, Inc. has shown relatively stable performance over the past eight quarters, ranging from 1.28 to 1.32. This indicates that the company relies more on debt financing rather than equity financing to fund its operations and growth. A financial leverage ratio above 1 suggests that the company has more debt than equity in its capital structure, which can magnify returns when business is booming but also increase risks during economic downturns. Keeping a close eye on this ratio is important to ensure that the company maintains a healthy balance between debt and equity to support sustainable growth and financial stability.