Vertex Pharmaceuticals Inc (VRTX)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 3,832,000 | 4,307,400 | 2,782,100 | 3,175,050 | 1,453,400 |
| Interest expense | US$ in thousands | 38,800 | 43,500 | 47,400 | 58,151 | 58,502 |
| Interest coverage | 98.76 | 99.02 | 58.69 | 54.60 | 24.84 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $3,832,000K ÷ $38,800K
= 98.76
The interest coverage ratio for Vertex Pharmaceuticals, Inc. is unavailable for the years ending December 31, 2023, and 2019. However, for the years ending December 31, 2022, and 2021, the interest coverage ratios were 49.10 and 79.90, respectively. This indicates that Vertex Pharmaceuticals had a strong ability to cover its interest expenses with its operating income in those years. An interest coverage ratio of 49.10 means that the company's operating income was 49.10 times higher than its interest expenses for 2022, while a higher ratio of 79.90 for 2021 demonstrates an even greater ability to meet its interest obligations. It suggests that the company had robust profitability and financial stability during those periods, providing a cushion to handle its interest payments comfortably.
Peer comparison
Dec 31, 2023