Vertex Pharmaceuticals Inc (VRTX)

Financial leverage 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
Total assets	US$ in thousands	22,533,200	22,240,200	20,132,100	23,917,400	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
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
Financial leverage ratio		1.37	1.42	1.36	1.29	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

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $22,533,200K ÷ $16,409,600K
= 1.37

The financial leverage ratio of Vertex Pharmaceuticals Inc has shown fluctuations over the past few years. The ratio indicates the proportion of the company's assets financed by debt as opposed to equity.

From March 31, 2020, to June 30, 2022, the financial leverage ratio remained relatively stable, fluctuating between 1.38 and 1.31. However, from September 30, 2022, to December 31, 2024, there was a notable increase in the ratio, reaching a peak of 1.42 on September 30, 2024.

This increase in the financial leverage ratio may suggest that Vertex Pharmaceuticals Inc has been relying more on debt to finance its operations and investments during this period. It is important for the company to carefully manage its debt levels to ensure it remains financially stable and able to meet its obligations.

Overall, monitoring the financial leverage ratio is crucial for investors and stakeholders to gauge the company's risk levels and financial health.