Vertex Pharmaceuticals Inc (VRTX)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	3,832,000	3,877,000	3,965,600	4,045,500	4,307,400	4,151,600	4,079,400	2,935,200	2,782,100	2,809,311	2,514,538	3,391,079	3,174,949	2,961,237	2,286,724	1,790,058	1,453,421	838,894	909,167	803,048
Interest expense (ttm)	US$ in thousands	44,100	45,100	47,900	51,300	54,800	58,300	59,855	60,733	61,511	62,699	61,300	59,693	58,151	56,112	56,804	57,770	58,502	62,997	67,135	70,453
Interest coverage		86.89	85.96	82.79	78.86	78.60	71.21	68.15	48.33	45.23	44.81	41.02	56.81	54.60	52.77	40.26	30.99	24.84	13.32	13.54	11.40

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $3,832,000K ÷ $44,100K
= 86.89

Interest coverage ratio is a financial metric used to evaluate a company's ability to meet its interest obligations on debt. It is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expenses. A higher interest coverage ratio indicates that the company is more capable of servicing its debt.

In the case of Vertex Pharmaceuticals, Inc., the interest coverage ratio was not available for Q4 2023, Q3 2023, Q2 2023, and Q1 2023. However, in Q2 2022 and Q1 2022, the interest coverage ratios were 90.47 and 52.59, respectively. This indicates that Vertex Pharmaceuticals, Inc. had a strong ability to cover its interest expenses during those periods.

It is important to note that the absence of data for the most recent quarters makes it challenging to assess the current financial health of the company in terms of its ability to cover its interest expenses. Further analysis and monitoring of Vertex Pharmaceuticals, Inc.'s financial performance will be required to gain a more comprehensive understanding of its interest coverage ratio and overall financial stability.