Stock Analysis on Net

Vertex Pharmaceuticals Inc. (NASDAQ:VRTX)

This company has been moved to the archive! The financial data has not been updated since February 15, 2024.

Analysis of Solvency Ratios 

Microsoft Excel

Solvency Ratios (Summary)

Vertex Pharmaceuticals Inc., solvency ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Debt Ratios
Debt to equity 0.02 0.03 0.06 0.07 0.09
Debt to equity (including operating lease liability) 0.05 0.06 0.10 0.11 0.11
Debt to capital 0.02 0.03 0.05 0.06 0.09
Debt to capital (including operating lease liability) 0.04 0.06 0.09 0.10 0.10
Debt to assets 0.02 0.03 0.04 0.05 0.07
Debt to assets (including operating lease liability) 0.04 0.05 0.07 0.08 0.08
Financial leverage 1.29 1.30 1.33 1.35 1.37
Coverage Ratios
Interest coverage 100.32 78.23 45.40 54.60 24.84
Fixed charge coverage 48.66 47.97 29.62 39.35 20.79

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Vertex Pharmaceuticals Inc. debt to equity ratio improved from 2021 to 2022 and from 2022 to 2023.
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Vertex Pharmaceuticals Inc. debt to equity ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Vertex Pharmaceuticals Inc. debt to capital ratio improved from 2021 to 2022 and from 2022 to 2023.
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Vertex Pharmaceuticals Inc. debt to capital ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Vertex Pharmaceuticals Inc. debt to assets ratio improved from 2021 to 2022 and from 2022 to 2023.
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Vertex Pharmaceuticals Inc. debt to assets ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Vertex Pharmaceuticals Inc. financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Vertex Pharmaceuticals Inc. interest coverage ratio improved from 2021 to 2022 and from 2022 to 2023.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Vertex Pharmaceuticals Inc. fixed charge coverage ratio improved from 2021 to 2022 and from 2022 to 2023.

Debt to Equity

Vertex Pharmaceuticals Inc., debt to equity calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Current finance lease liabilities 50,600 40,800 46,900 42,434 38,794
Long-term finance lease liabilities 376,100 430,800 509,800 539,042 538,576
Total debt 426,700 471,600 556,700 581,476 577,370
 
Shareholders’ equity 17,580,400 13,912,700 10,100,000 8,686,815 6,085,244
Solvency Ratio
Debt to equity1 0.02 0.03 0.06 0.07 0.09
Benchmarks
Debt to Equity, Competitors2
AbbVie Inc. 5.73 3.67 4.98 6.58
Amgen Inc. 10.37 10.64 4.97 3.51 3.09
Bristol-Myers Squibb Co. 1.35 1.27 1.24 1.34 0.91
Danaher Corp. 0.34 0.39 0.49 0.53 0.72
Eli Lilly & Co. 2.34 1.52 1.88 2.94 5.88
Gilead Sciences Inc. 1.09 1.19 1.27 1.73 1.09
Johnson & Johnson 0.43 0.52 0.46 0.56 0.47
Merck & Co. Inc. 0.93 0.67 0.87 1.26 1.02
Moderna Inc. 0.04 0.06 0.05 0.05 0.03
Pfizer Inc. 0.81 0.37 0.50 0.63 0.83
Regeneron Pharmaceuticals Inc. 0.10 0.12 0.14 0.24 0.06
Thermo Fisher Scientific Inc. 0.75 0.78 0.85 0.63 0.60
Debt to Equity, Sector
Pharmaceuticals, Biotechnology & Life Sciences 0.98 0.79 0.92 1.14 1.10
Debt to Equity, Industry
Health Care 0.81 0.72 0.78 0.90 0.91

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= 426,700 ÷ 17,580,400 = 0.02

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Vertex Pharmaceuticals Inc. debt to equity ratio improved from 2021 to 2022 and from 2022 to 2023.

Debt to Equity (including Operating Lease Liability)

Vertex Pharmaceuticals Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Current finance lease liabilities 50,600 40,800 46,900 42,434 38,794
Long-term finance lease liabilities 376,100 430,800 509,800 539,042 538,576
Total debt 426,700 471,600 556,700 581,476 577,370
Current operating lease liabilities 33,100 48,600 33,300 10,521 11,504
Long-term operating lease liabilities 348,600 379,500 377,400 350,463 84,292
Total debt (including operating lease liability) 808,400 899,700 967,400 942,460 673,166
 
Shareholders’ equity 17,580,400 13,912,700 10,100,000 8,686,815 6,085,244
Solvency Ratio
Debt to equity (including operating lease liability)1 0.05 0.06 0.10 0.11 0.11
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
AbbVie Inc. 5.82 3.72 5.03 6.66
Amgen Inc. 10.50 10.83 5.07 3.55 3.15
Bristol-Myers Squibb Co. 1.41 1.31 1.27 1.37 0.92
Danaher Corp. 0.37 0.41 0.52 0.56 0.74
Eli Lilly & Co. 2.44 1.59 1.96 3.06 6.11
Gilead Sciences Inc. 1.12 1.22 1.30 1.76 1.12
Johnson & Johnson 0.44 0.53 0.47 0.57 0.48
Merck & Co. Inc. 0.97 0.70 0.91 1.32 1.06
Moderna Inc. 0.09 0.06 0.06 0.09 0.12
Pfizer Inc. 0.84 0.41 0.54 0.65 0.85
Regeneron Pharmaceuticals Inc. 0.11 0.12 0.15 0.25 0.07
Thermo Fisher Scientific Inc. 0.78 0.82 0.89 0.65 0.62
Debt to Equity (including Operating Lease Liability), Sector
Pharmaceuticals, Biotechnology & Life Sciences 1.01 0.82 0.95 1.17 1.13
Debt to Equity (including Operating Lease Liability), Industry
Health Care 0.86 0.77 0.84 0.96 0.97

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity
= 808,400 ÷ 17,580,400 = 0.05

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to equity ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. Vertex Pharmaceuticals Inc. debt to equity ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023.

Debt to Capital

Vertex Pharmaceuticals Inc., debt to capital calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Current finance lease liabilities 50,600 40,800 46,900 42,434 38,794
Long-term finance lease liabilities 376,100 430,800 509,800 539,042 538,576
Total debt 426,700 471,600 556,700 581,476 577,370
Shareholders’ equity 17,580,400 13,912,700 10,100,000 8,686,815 6,085,244
Total capital 18,007,100 14,384,300 10,656,700 9,268,291 6,662,614
Solvency Ratio
Debt to capital1 0.02 0.03 0.05 0.06 0.09
Benchmarks
Debt to Capital, Competitors2
AbbVie Inc. 0.85 0.79 0.83 0.87 1.14
Amgen Inc. 0.91 0.91 0.83 0.78 0.76
Bristol-Myers Squibb Co. 0.57 0.56 0.55 0.57 0.48
Danaher Corp. 0.26 0.28 0.33 0.35 0.42
Eli Lilly & Co. 0.70 0.60 0.65 0.75 0.85
Gilead Sciences Inc. 0.52 0.54 0.56 0.63 0.52
Johnson & Johnson 0.30 0.34 0.31 0.36 0.32
Merck & Co. Inc. 0.48 0.40 0.46 0.56 0.50
Moderna Inc. 0.04 0.05 0.05 0.05 0.03
Pfizer Inc. 0.45 0.27 0.33 0.39 0.45
Regeneron Pharmaceuticals Inc. 0.09 0.11 0.13 0.20 0.06
Thermo Fisher Scientific Inc. 0.43 0.44 0.46 0.39 0.37
Debt to Capital, Sector
Pharmaceuticals, Biotechnology & Life Sciences 0.50 0.44 0.48 0.53 0.52
Debt to Capital, Industry
Health Care 0.45 0.42 0.44 0.47 0.48

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 426,700 ÷ 18,007,100 = 0.02

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Vertex Pharmaceuticals Inc. debt to capital ratio improved from 2021 to 2022 and from 2022 to 2023.

Debt to Capital (including Operating Lease Liability)

Vertex Pharmaceuticals Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Current finance lease liabilities 50,600 40,800 46,900 42,434 38,794
Long-term finance lease liabilities 376,100 430,800 509,800 539,042 538,576
Total debt 426,700 471,600 556,700 581,476 577,370
Current operating lease liabilities 33,100 48,600 33,300 10,521 11,504
Long-term operating lease liabilities 348,600 379,500 377,400 350,463 84,292
Total debt (including operating lease liability) 808,400 899,700 967,400 942,460 673,166
Shareholders’ equity 17,580,400 13,912,700 10,100,000 8,686,815 6,085,244
Total capital (including operating lease liability) 18,388,800 14,812,400 11,067,400 9,629,275 6,758,410
Solvency Ratio
Debt to capital (including operating lease liability)1 0.04 0.06 0.09 0.10 0.10
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
AbbVie Inc. 0.85 0.79 0.83 0.87 1.14
Amgen Inc. 0.91 0.92 0.84 0.78 0.76
Bristol-Myers Squibb Co. 0.58 0.57 0.56 0.58 0.48
Danaher Corp. 0.27 0.29 0.34 0.36 0.43
Eli Lilly & Co. 0.71 0.61 0.66 0.75 0.86
Gilead Sciences Inc. 0.53 0.55 0.56 0.64 0.53
Johnson & Johnson 0.31 0.35 0.32 0.36 0.33
Merck & Co. Inc. 0.49 0.41 0.48 0.57 0.51
Moderna Inc. 0.08 0.06 0.06 0.08 0.10
Pfizer Inc. 0.46 0.29 0.35 0.39 0.46
Regeneron Pharmaceuticals Inc. 0.10 0.11 0.13 0.20 0.07
Thermo Fisher Scientific Inc. 0.44 0.45 0.47 0.40 0.38
Debt to Capital (including Operating Lease Liability), Sector
Pharmaceuticals, Biotechnology & Life Sciences 0.50 0.45 0.49 0.54 0.53
Debt to Capital (including Operating Lease Liability), Industry
Health Care 0.46 0.44 0.46 0.49 0.49

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 808,400 ÷ 18,388,800 = 0.04

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Vertex Pharmaceuticals Inc. debt to capital ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023.

Debt to Assets

Vertex Pharmaceuticals Inc., debt to assets calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Current finance lease liabilities 50,600 40,800 46,900 42,434 38,794
Long-term finance lease liabilities 376,100 430,800 509,800 539,042 538,576
Total debt 426,700 471,600 556,700 581,476 577,370
 
Total assets 22,730,200 18,150,900 13,432,500 11,751,808 8,318,465
Solvency Ratio
Debt to assets1 0.02 0.03 0.04 0.05 0.07
Benchmarks
Debt to Assets, Competitors2
AbbVie Inc. 0.44 0.46 0.52 0.57 0.75
Amgen Inc. 0.67 0.60 0.54 0.52 0.50
Bristol-Myers Squibb Co. 0.42 0.41 0.41 0.43 0.36
Danaher Corp. 0.22 0.23 0.27 0.28 0.35
Eli Lilly & Co. 0.39 0.33 0.35 0.36 0.39
Gilead Sciences Inc. 0.40 0.40 0.39 0.46 0.40
Johnson & Johnson 0.18 0.21 0.19 0.20 0.18
Merck & Co. Inc. 0.33 0.28 0.31 0.35 0.31
Moderna Inc. 0.03 0.04 0.03 0.02 0.02
Pfizer Inc. 0.32 0.18 0.21 0.26 0.31
Regeneron Pharmaceuticals Inc. 0.08 0.09 0.11 0.16 0.05
Thermo Fisher Scientific Inc. 0.35 0.35 0.37 0.31 0.30
Debt to Assets, Sector
Pharmaceuticals, Biotechnology & Life Sciences 0.34 0.30 0.32 0.36 0.36
Debt to Assets, Industry
Health Care 0.29 0.27 0.28 0.30 0.31

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 426,700 ÷ 22,730,200 = 0.02

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Vertex Pharmaceuticals Inc. debt to assets ratio improved from 2021 to 2022 and from 2022 to 2023.

Debt to Assets (including Operating Lease Liability)

Vertex Pharmaceuticals Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Current finance lease liabilities 50,600 40,800 46,900 42,434 38,794
Long-term finance lease liabilities 376,100 430,800 509,800 539,042 538,576
Total debt 426,700 471,600 556,700 581,476 577,370
Current operating lease liabilities 33,100 48,600 33,300 10,521 11,504
Long-term operating lease liabilities 348,600 379,500 377,400 350,463 84,292
Total debt (including operating lease liability) 808,400 899,700 967,400 942,460 673,166
 
Total assets 22,730,200 18,150,900 13,432,500 11,751,808 8,318,465
Solvency Ratio
Debt to assets (including operating lease liability)1 0.04 0.05 0.07 0.08 0.08
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
AbbVie Inc. 0.45 0.46 0.53 0.58 0.75
Amgen Inc. 0.67 0.61 0.56 0.53 0.51
Bristol-Myers Squibb Co. 0.44 0.42 0.42 0.44 0.37
Danaher Corp. 0.23 0.25 0.28 0.29 0.36
Eli Lilly & Co. 0.41 0.34 0.36 0.37 0.41
Gilead Sciences Inc. 0.41 0.41 0.40 0.47 0.41
Johnson & Johnson 0.18 0.22 0.19 0.21 0.18
Merck & Co. Inc. 0.34 0.29 0.33 0.37 0.32
Moderna Inc. 0.07 0.05 0.04 0.03 0.09
Pfizer Inc. 0.33 0.20 0.23 0.27 0.32
Regeneron Pharmaceuticals Inc. 0.08 0.09 0.11 0.16 0.05
Thermo Fisher Scientific Inc. 0.37 0.37 0.38 0.33 0.32
Debt to Assets (including Operating Lease Liability), Sector
Pharmaceuticals, Biotechnology & Life Sciences 0.35 0.31 0.33 0.37 0.36
Debt to Assets (including Operating Lease Liability), Industry
Health Care 0.31 0.29 0.30 0.32 0.33

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 808,400 ÷ 22,730,200 = 0.04

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Vertex Pharmaceuticals Inc. debt to assets ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023.

Financial Leverage

Vertex Pharmaceuticals Inc., financial leverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Total assets 22,730,200 18,150,900 13,432,500 11,751,808 8,318,465
Shareholders’ equity 17,580,400 13,912,700 10,100,000 8,686,815 6,085,244
Solvency Ratio
Financial leverage1 1.29 1.30 1.33 1.35 1.37
Benchmarks
Financial Leverage, Competitors2
AbbVie Inc. 13.00 8.04 9.51 11.51
Amgen Inc. 15.59 17.79 9.13 6.69 6.17
Bristol-Myers Squibb Co. 3.23 3.12 3.04 3.13 2.52
Danaher Corp. 1.58 1.68 1.84 1.92 2.05
Eli Lilly & Co. 5.94 4.65 5.44 8.27 15.07
Gilead Sciences Inc. 2.72 2.97 3.23 3.76 2.74
Johnson & Johnson 2.44 2.44 2.46 2.76 2.65
Merck & Co. Inc. 2.84 2.37 2.77 3.62 3.26
Moderna Inc. 1.33 1.35 1.74 2.86 1.35
Pfizer Inc. 2.54 2.06 2.35 2.44 2.65
Regeneron Pharmaceuticals Inc. 1.27 1.29 1.36 1.56 1.34
Thermo Fisher Scientific Inc. 2.11 2.21 2.33 2.00 1.97
Financial Leverage, Sector
Pharmaceuticals, Biotechnology & Life Sciences 2.86 2.61 2.85 3.20 3.10
Financial Leverage, Industry
Health Care 2.80 2.66 2.77 2.95 2.93

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= 22,730,200 ÷ 17,580,400 = 1.29

2 Click competitor name to see calculations.

Solvency ratio Description The company
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Vertex Pharmaceuticals Inc. financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.

Interest Coverage

Vertex Pharmaceuticals Inc., interest coverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Net income 3,619,600 3,322,000 2,342,100 2,711,647 1,176,810
Add: Income tax expense 760,200 910,400 388,300 405,151 218,109
Add: Interest expense 44,100 54,800 61,500 58,151 58,502
Earnings before interest and tax (EBIT) 4,423,900 4,287,200 2,791,900 3,174,949 1,453,421
Solvency Ratio
Interest coverage1 100.32 78.23 45.40 54.60 24.84
Benchmarks
Interest Coverage, Competitors2
AbbVie Inc. 3.81 7.04 6.36 2.38 5.72
Amgen Inc. 3.73 6.22 6.60 7.44 8.09
Bristol-Myers Squibb Co. 8.24 7.26 7.07 -3.84 8.58
Danaher Corp. 18.64 40.30 32.92 17.35 31.44
Eli Lilly & Co. 14.49 21.53 19.12 21.11 14.15
Gilead Sciences Inc. 8.27 7.22 9.27 2.70 6.19
Johnson & Johnson 20.51 79.71 125.46 83.07 55.49
Merck & Co. Inc. 2.65 18.09 18.22 11.58 13.84
Moderna Inc. -102.74 331.17 739.06 -74.31 -76.85
Pfizer Inc. 1.48 29.05 19.83 6.17 12.23
Regeneron Pharmaceuticals Inc. 58.52 82.80 163.75 67.97 81.43
Thermo Fisher Scientific Inc. 5.54 11.56 17.49 14.07 7.02
Interest Coverage, Sector
Pharmaceuticals, Biotechnology & Life Sciences 5.82 15.99 16.09 7.20 11.16
Interest Coverage, Industry
Health Care 6.75 12.97 12.85 7.67 8.84

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Interest coverage = EBIT ÷ Interest expense
= 4,423,900 ÷ 44,100 = 100.32

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Vertex Pharmaceuticals Inc. interest coverage ratio improved from 2021 to 2022 and from 2022 to 2023.

Fixed Charge Coverage

Vertex Pharmaceuticals Inc., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Net income 3,619,600 3,322,000 2,342,100 2,711,647 1,176,810
Add: Income tax expense 760,200 910,400 388,300 405,151 218,109
Add: Interest expense 44,100 54,800 61,500 58,151 58,502
Earnings before interest and tax (EBIT) 4,423,900 4,287,200 2,791,900 3,174,949 1,453,421
Add: Operating lease cost 47,800 35,300 33,900 23,128 11,972
Earnings before fixed charges and tax 4,471,700 4,322,500 2,825,800 3,198,077 1,465,393
 
Interest expense 44,100 54,800 61,500 58,151 58,502
Operating lease cost 47,800 35,300 33,900 23,128 11,972
Fixed charges 91,900 90,100 95,400 81,279 70,474
Solvency Ratio
Fixed charge coverage1 48.66 47.97 29.62 39.35 20.79
Benchmarks
Fixed Charge Coverage, Competitors2
AbbVie Inc. 3.59 6.54 5.90 2.28 5.42
Amgen Inc. 3.55 5.52 5.67 6.48 7.12
Bristol-Myers Squibb Co. 6.69 6.30 6.01 -3.08 7.10
Danaher Corp. 9.55 13.41 10.85 7.10 8.38
Eli Lilly & Co. 10.98 15.17 13.33 15.06 10.18
Gilead Sciences Inc. 7.18 6.30 8.15 2.45 5.46
Johnson & Johnson 16.50 38.72 48.16 33.93 28.72
Merck & Co. Inc. 2.27 13.69 13.08 8.47 10.31
Moderna Inc. -30.29 125.35 317.31 -26.75 -20.79
Pfizer Inc. 1.34 18.79 14.22 4.98 9.88
Regeneron Pharmaceuticals Inc. 46.55 68.67 138.96 57.70 60.98
Thermo Fisher Scientific Inc. 4.61 8.12 12.19 10.30 5.61
Fixed Charge Coverage, Sector
Pharmaceuticals, Biotechnology & Life Sciences 4.90 12.28 12.38 5.83 8.93
Fixed Charge Coverage, Industry
Health Care 5.27 9.19 9.09 5.67 6.58

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 4,471,700 ÷ 91,900 = 48.66

2 Click competitor name to see calculations.

Solvency ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Vertex Pharmaceuticals Inc. fixed charge coverage ratio improved from 2021 to 2022 and from 2022 to 2023.