Analysis of Debt
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- Statement of Comprehensive Income
- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- Common Stock Valuation Ratios
- Selected Financial Data since 2005
- Net Profit Margin since 2005
- Operating Profit Margin since 2005
- Return on Assets (ROA) since 2005
- Debt to Equity since 2005
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Total Debt (Carrying Amount)
Vertex Pharmaceuticals Inc., balance sheet: debt
US$ in thousands
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|
| Current finance lease liabilities | ||||||
| Long-term finance lease liabilities | ||||||
| Total finance lease liabilities (carrying amount) |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The carrying amount of total finance lease liabilities demonstrates a significant decreasing trend over the five-year period. Initial values are substantially higher than those observed in later years, indicating a deliberate reduction in lease obligations.
- Overall Trend
- A consistent decline in total finance lease liabilities is evident from December 31, 2021, to December 31, 2025. The amount decreased from US$556.7 million to US$112.2 million, representing a reduction of approximately 79.7% over the period.
- Current vs. Long-Term Liabilities
- Both current and long-term finance lease liabilities contribute to the overall downward trend. However, the reduction is more pronounced in the long-term portion. In 2021, long-term liabilities constituted approximately 91.8% of the total, decreasing to approximately 95.1% by 2025. This suggests a strategic shift in the timing of lease payments or a restructuring of lease agreements to reclassify obligations.
- Rate of Decline
- The largest absolute decrease occurred between 2021 and 2022, with a reduction of US$85.1 million. The rate of decline slowed in subsequent years, although it remained consistently negative. The decrease from 2024 to 2025 was relatively small, at US$5.8 million, potentially indicating the approach of a stabilized lower level of lease obligations.
- Current Lease Liabilities
- Current finance lease liabilities experienced a decrease from US$46.9 million in 2021 to US$40.8 million in 2022, followed by an increase to US$50.6 million in 2023. Subsequently, these liabilities decreased significantly to US$5.2 million in 2024 and US$5.5 million in 2025. This fluctuation suggests active management of short-term lease commitments.
The substantial reduction in total finance lease liabilities suggests improved financial flexibility and a decreased reliance on lease financing. Continued monitoring of this trend is recommended to assess the long-term implications for the company’s financial position.
Total Debt (Fair Value)
| Dec 31, 2025 | |
|---|---|
| Selected Financial Data (US$ in thousands) | |
| Total finance lease liabilities (fair value) | |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | |
Based on: 10-K (reporting date: 2025-12-31).
Weighted-average Interest Rate on Debt
Weighted-average discount rate, finance leases:
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| Total | |||
Based on: 10-K (reporting date: 2025-12-31).
1 US$ in thousands
2 Weighted-average interest rate = 100 × ÷ =