Stock Analysis on Net

Vertex Pharmaceuticals Inc. (NASDAQ:VRTX)

Analysis of Short-term (Operating) Activity Ratios 

Microsoft Excel

Short-term Activity Ratios (Summary)

Vertex Pharmaceuticals Inc., short-term (operating) activity ratios

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Turnover Ratios
Inventory turnover 1.27 1.71 2.35 2.56 2.62
Receivables turnover 6.85 6.31 6.19 6.66 7.01
Payables turnover 3.71 3.46 3.55 4.64 4.75
Working capital turnover 1.83 0.93 0.85 1.02 0.99
Average No. Days
Average inventory processing period 287 214 156 143 139
Add: Average receivable collection period 53 58 59 55 52
Operating cycle 340 272 215 198 191
Less: Average payables payment period 98 106 103 79 77
Cash conversion cycle 242 166 112 119 114

Based on: 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), 10-K (reporting date: 2020-12-31).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Vertex Pharmaceuticals Inc. inventory turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.
Receivables turnover An activity ratio equal to revenue divided by receivables. Vertex Pharmaceuticals Inc. receivables turnover ratio improved from 2022 to 2023 and from 2023 to 2024.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Vertex Pharmaceuticals Inc. payables turnover ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Vertex Pharmaceuticals Inc. working capital turnover ratio improved from 2022 to 2023 and from 2023 to 2024.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Vertex Pharmaceuticals Inc. number of days of inventory outstanding deteriorated from 2022 to 2023 and from 2023 to 2024.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Vertex Pharmaceuticals Inc. number of days of receivables outstanding improved from 2022 to 2023 and from 2023 to 2024.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Vertex Pharmaceuticals Inc. operating cycle deteriorated from 2022 to 2023 and from 2023 to 2024.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Vertex Pharmaceuticals Inc. number of days of payables outstanding increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Vertex Pharmaceuticals Inc. cash conversion cycle deteriorated from 2022 to 2023 and from 2023 to 2024.

Inventory Turnover

Vertex Pharmaceuticals Inc., inventory turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in thousands)
Cost of sales 1,530,500 1,262,200 1,080,300 904,200 736,300
Inventories 1,205,400 738,800 460,600 353,100 280,777
Short-term Activity Ratio
Inventory turnover1 1.27 1.71 2.35 2.56 2.62
Benchmarks
Inventory Turnover, Competitors2
AbbVie Inc. 4.04 4.98 4.87 5.58 4.65
Amgen Inc. 1.84 0.89 1.30 1.58 1.58
Bristol-Myers Squibb Co. 5.46 4.02 4.33 4.74 5.68
Danaher Corp. 4.15 3.80 4.03 4.16 4.28
Eli Lilly & Co. 1.11 1.23 1.54 1.88 1.38
Gilead Sciences Inc. 3.66 3.64 3.75 4.08 2.72
Johnson & Johnson 2.21 2.37 2.49 2.87 3.04
Merck & Co. Inc. 2.49 2.54 2.95 2.29 2.45
Pfizer Inc. 1.65 2.45 3.82 3.40 1.08
Regeneron Pharmaceuticals Inc. 0.64 0.70 0.65 1.25 0.58
Thermo Fisher Scientific Inc. 5.06 5.06 4.60 3.88 4.02
Inventory Turnover, Sector
Pharmaceuticals, Biotechnology & Life Sciences 2.46 2.55 3.06 3.11 2.63
Inventory Turnover, Industry
Health Care 9.50 9.18 9.22 9.17 8.17

Based on: 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), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Inventory turnover = Cost of sales ÷ Inventories
= 1,530,500 ÷ 1,205,400 = 1.27

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Vertex Pharmaceuticals Inc. inventory turnover ratio deteriorated from 2022 to 2023 and from 2023 to 2024.

Receivables Turnover

Vertex Pharmaceuticals Inc., receivables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in thousands)
Revenues 11,020,100 9,869,200 8,930,700 7,574,400 6,205,683
Accounts receivable, net 1,609,400 1,563,400 1,442,200 1,136,800 885,352
Short-term Activity Ratio
Receivables turnover1 6.85 6.31 6.19 6.66 7.01
Benchmarks
Receivables Turnover, Competitors2
AbbVie Inc. 5.16 4.87 5.16 5.63 5.19
Amgen Inc. 4.72 3.70 4.46 4.96 5.36
Bristol-Myers Squibb Co. 5.19 4.93 5.48 5.65 5.72
Danaher Corp. 6.75 6.09 6.40 6.36 5.51
Eli Lilly & Co. 4.09 3.75 4.14 4.24 4.18
Gilead Sciences Inc. 6.47 5.78 5.65 6.01 4.98
Johnson & Johnson 5.98 5.73 5.88 6.14 6.08
Merck & Co. Inc. 6.24 5.81 6.27 5.28 6.11
Pfizer Inc. 5.55 5.33 9.24 7.16 5.38
Regeneron Pharmaceuticals Inc. 2.29 2.31 2.28 2.66 2.07
Thermo Fisher Scientific Inc. 5.23 5.21 5.53 4.92 5.61
Receivables Turnover, Sector
Pharmaceuticals, Biotechnology & Life Sciences 5.26 4.96 5.76 5.54 5.34
Receivables Turnover, Industry
Health Care 8.42 8.15 8.84 8.65 8.64

Based on: 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), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Receivables turnover = Revenues ÷ Accounts receivable, net
= 11,020,100 ÷ 1,609,400 = 6.85

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Vertex Pharmaceuticals Inc. receivables turnover ratio improved from 2022 to 2023 and from 2023 to 2024.

Payables Turnover

Vertex Pharmaceuticals Inc., payables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in thousands)
Cost of sales 1,530,500 1,262,200 1,080,300 904,200 736,300
Accounts payable 413,000 364,900 303,900 195,000 155,139
Short-term Activity Ratio
Payables turnover1 3.71 3.46 3.55 4.64 4.75
Benchmarks
Payables Turnover, Competitors2
AbbVie Inc. 5.74 5.54 5.94 6.05 6.76
Amgen Inc. 6.74 5.32 4.08 4.72 4.33
Bristol-Myers Squibb Co. 3.88 3.28 3.33 3.37 4.34
Danaher Corp. 5.52 5.58 5.45 4.48 4.79
Eli Lilly & Co. 2.61 2.73 3.43 4.38 3.41
Gilead Sciences Inc. 7.50 11.81 6.25 9.36 5.42
Johnson & Johnson 2.66 2.76 2.66 2.70 2.99
Merck & Co. Inc. 3.72 4.11 4.08 2.96 3.37
Pfizer Inc. 3.17 3.72 5.04 5.53 2.02
Regeneron Pharmaceuticals Inc. 2.50 2.99 2.65 4.32 2.36
Thermo Fisher Scientific Inc. 8.18 8.97 7.67 6.83 7.45
Payables Turnover, Sector
Pharmaceuticals, Biotechnology & Life Sciences 4.08 4.25 4.28 4.23 3.86
Payables Turnover, Industry
Health Care 8.12 7.96 7.50 7.61 7.48

Based on: 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), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Payables turnover = Cost of sales ÷ Accounts payable
= 1,530,500 ÷ 413,000 = 3.71

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Vertex Pharmaceuticals Inc. payables turnover ratio decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Working Capital Turnover

Vertex Pharmaceuticals Inc., working capital turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data (US$ in thousands)
Current assets 9,596,400 14,144,200 13,234,800 9,560,600 8,133,379
Less: Current liabilities 3,564,600 3,547,400 2,742,100 2,142,000 1,877,533
Working capital 6,031,800 10,596,800 10,492,700 7,418,600 6,255,846
 
Revenues 11,020,100 9,869,200 8,930,700 7,574,400 6,205,683
Short-term Activity Ratio
Working capital turnover1 1.83 0.93 0.85 1.02 0.99
Benchmarks
Working Capital Turnover, Competitors2
AbbVie Inc.
Amgen Inc. 5.40 2.25 3.82 3.37 2.55
Bristol-Myers Squibb Co. 7.79 4.60 8.30 3.95 3.72
Danaher Corp. 8.85 4.22 4.20 8.40 3.48
Eli Lilly & Co. 10.32 31.84 8.33 4.93
Gilead Sciences Inc. 3.99 5.61 8.42 8.54 5.30
Johnson & Johnson 15.94 11.81 5.95 9.44
Merck & Co. Inc. 6.19 9.29 5.16 7.62 109.83
Pfizer Inc. 8.64 11.09 4.83 4.67
Regeneron Pharmaceuticals Inc. 0.97 0.82 0.96 1.59 1.20
Thermo Fisher Scientific Inc. 4.87 4.05 5.46 5.87 2.76
Working Capital Turnover, Sector
Pharmaceuticals, Biotechnology & Life Sciences 7.86 6.68 7.25 5.87 5.34
Working Capital Turnover, Industry
Health Care 19.80 16.59 15.34 11.93 11.78

Based on: 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), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Working capital turnover = Revenues ÷ Working capital
= 11,020,100 ÷ 6,031,800 = 1.83

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Vertex Pharmaceuticals Inc. working capital turnover ratio improved from 2022 to 2023 and from 2023 to 2024.

Average Inventory Processing Period

Vertex Pharmaceuticals Inc., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Inventory turnover 1.27 1.71 2.35 2.56 2.62
Short-term Activity Ratio (no. days)
Average inventory processing period1 287 214 156 143 139
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
AbbVie Inc. 90 73 75 65 79
Amgen Inc. 199 411 281 231 231
Bristol-Myers Squibb Co. 67 91 84 77 64
Danaher Corp. 88 96 91 88 85
Eli Lilly & Co. 329 298 237 194 265
Gilead Sciences Inc. 100 100 97 89 134
Johnson & Johnson 165 154 147 127 120
Merck & Co. Inc. 147 144 124 159 149
Pfizer Inc. 222 149 95 107 338
Regeneron Pharmaceuticals Inc. 572 519 562 292 625
Thermo Fisher Scientific Inc. 72 72 79 94 91
Average Inventory Processing Period, Sector
Pharmaceuticals, Biotechnology & Life Sciences 149 143 119 117 139
Average Inventory Processing Period, Industry
Health Care 38 40 40 40 45

Based on: 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), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 1.27 = 287

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Vertex Pharmaceuticals Inc. number of days of inventory outstanding deteriorated from 2022 to 2023 and from 2023 to 2024.

Average Receivable Collection Period

Vertex Pharmaceuticals Inc., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Receivables turnover 6.85 6.31 6.19 6.66 7.01
Short-term Activity Ratio (no. days)
Average receivable collection period1 53 58 59 55 52
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
AbbVie Inc. 71 75 71 65 70
Amgen Inc. 77 99 82 74 68
Bristol-Myers Squibb Co. 70 74 67 65 64
Danaher Corp. 54 60 57 57 66
Eli Lilly & Co. 89 97 88 86 87
Gilead Sciences Inc. 56 63 65 61 73
Johnson & Johnson 61 64 62 59 60
Merck & Co. Inc. 58 63 58 69 60
Pfizer Inc. 66 69 40 51 68
Regeneron Pharmaceuticals Inc. 160 158 160 137 177
Thermo Fisher Scientific Inc. 70 70 66 74 65
Average Receivable Collection Period, Sector
Pharmaceuticals, Biotechnology & Life Sciences 69 74 63 66 68
Average Receivable Collection Period, Industry
Health Care 43 45 41 42 42

Based on: 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), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 6.85 = 53

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Vertex Pharmaceuticals Inc. number of days of receivables outstanding improved from 2022 to 2023 and from 2023 to 2024.

Operating Cycle

Vertex Pharmaceuticals Inc., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Average inventory processing period 287 214 156 143 139
Average receivable collection period 53 58 59 55 52
Short-term Activity Ratio
Operating cycle1 340 272 215 198 191
Benchmarks
Operating Cycle, Competitors2
AbbVie Inc. 161 148 146 130 149
Amgen Inc. 276 510 363 305 299
Bristol-Myers Squibb Co. 137 165 151 142 128
Danaher Corp. 142 156 148 145 151
Eli Lilly & Co. 418 395 325 280 352
Gilead Sciences Inc. 156 163 162 150 207
Johnson & Johnson 226 218 209 186 180
Merck & Co. Inc. 205 207 182 228 209
Pfizer Inc. 288 218 135 158 406
Regeneron Pharmaceuticals Inc. 732 677 722 429 802
Thermo Fisher Scientific Inc. 142 142 145 168 156
Operating Cycle, Sector
Pharmaceuticals, Biotechnology & Life Sciences 218 217 182 183 207
Operating Cycle, Industry
Health Care 81 85 81 82 87

Based on: 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), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 287 + 53 = 340

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Vertex Pharmaceuticals Inc. operating cycle deteriorated from 2022 to 2023 and from 2023 to 2024.

Average Payables Payment Period

Vertex Pharmaceuticals Inc., average payables payment period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Payables turnover 3.71 3.46 3.55 4.64 4.75
Short-term Activity Ratio (no. days)
Average payables payment period1 98 106 103 79 77
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
AbbVie Inc. 64 66 61 60 54
Amgen Inc. 54 69 90 77 84
Bristol-Myers Squibb Co. 94 111 109 108 84
Danaher Corp. 66 65 67 82 76
Eli Lilly & Co. 140 134 106 83 107
Gilead Sciences Inc. 49 31 58 39 67
Johnson & Johnson 137 132 137 135 122
Merck & Co. Inc. 98 89 89 123 108
Pfizer Inc. 115 98 72 66 181
Regeneron Pharmaceuticals Inc. 146 122 138 84 155
Thermo Fisher Scientific Inc. 45 41 48 53 49
Average Payables Payment Period, Sector
Pharmaceuticals, Biotechnology & Life Sciences 90 86 85 86 95
Average Payables Payment Period, Industry
Health Care 45 46 49 48 49

Based on: 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), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 3.71 = 98

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Vertex Pharmaceuticals Inc. number of days of payables outstanding increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.

Cash Conversion Cycle

Vertex Pharmaceuticals Inc., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Selected Financial Data
Average inventory processing period 287 214 156 143 139
Average receivable collection period 53 58 59 55 52
Average payables payment period 98 106 103 79 77
Short-term Activity Ratio
Cash conversion cycle1 242 166 112 119 114
Benchmarks
Cash Conversion Cycle, Competitors2
AbbVie Inc. 97 82 85 70 95
Amgen Inc. 222 441 273 228 215
Bristol-Myers Squibb Co. 43 54 42 34 44
Danaher Corp. 76 91 81 63 75
Eli Lilly & Co. 278 261 219 197 245
Gilead Sciences Inc. 107 132 104 111 140
Johnson & Johnson 89 86 72 51 58
Merck & Co. Inc. 107 118 93 105 101
Pfizer Inc. 173 120 63 92 225
Regeneron Pharmaceuticals Inc. 586 555 584 345 647
Thermo Fisher Scientific Inc. 97 101 97 115 107
Cash Conversion Cycle, Sector
Pharmaceuticals, Biotechnology & Life Sciences 128 131 97 97 112
Cash Conversion Cycle, Industry
Health Care 36 39 32 34 38

Based on: 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), 10-K (reporting date: 2020-12-31).

1 2024 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 287 + 5398 = 242

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Vertex Pharmaceuticals Inc. cash conversion cycle deteriorated from 2022 to 2023 and from 2023 to 2024.