Analysis of Inventory
Paying user area
Try for free
Vertex Pharmaceuticals Inc. pages available for free this week:
- Common-Size Income Statement
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Common Stock Valuation Ratios
- Operating Profit Margin since 2005
- Debt to Equity since 2005
- Price to Earnings (P/E) since 2005
- Analysis of Revenues
- Analysis of Debt
- Aggregate Accruals
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Vertex Pharmaceuticals Inc. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Inventory Disclosure
Vertex Pharmaceuticals Inc., balance sheet: inventory
US$ in thousands
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Raw materials | |||||||||||
| Work-in-process | |||||||||||
| Finished goods | |||||||||||
| Inventories |
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).
- Inventories Trend
- The total inventories have shown a consistent upward trend over the five-year period, increasing from approximately $280.8 million in 2020 to around $1.205 billion in 2024. This represents more than a fourfold increase, indicating significant accumulation of inventory assets.
- Raw Materials
- Raw materials inventory initially declined from about $46.2 million in 2020 to $38.1 million in 2022, suggesting a reduction or optimization in raw material stock during that period. However, there was a sharp increase in 2023 to $78.7 million, followed by a substantial jump to $252 million in 2024, indicating a major buildup of raw materials. This large spike could reflect preparation for increased production or response to supply chain uncertainties.
- Work-in-Process
- Work-in-process inventory has shown a marked growth throughout the entire period, rising from approximately $161.3 million in 2020 to $768.8 million in 2024. The most significant acceleration occurred from 2022 to 2024, where the amount nearly tripled. This may indicate increased production activity, longer production cycles, or potential bottlenecks in manufacturing processes.
- Finished Goods
- The finished goods inventory increased from $73.2 million in 2020 to $161.8 million in 2022, before dipping to $135 million in 2023 and then rising again to $184.6 million in 2024. The fluctuations suggest adjustments in inventory management or sales performance, with a temporary decrease in stock possibly due to higher sales or inventory drawdown in 2023, followed by restocking in 2024.
- Inventory Composition
- The composition of inventories has shifted over time. Although all components have increased in absolute terms, work-in-process inventory accounts for a growing proportion of total inventories, reflecting intensified production efforts or inventory build-ups at intermediate stages. The significant increases in raw materials in 2024 also alter the composition, indicating a strategic stockpiling of inputs.
- Summary Insights
- Overall, the inventory data suggests a company experiencing expanding operational scale or facing supply chain challenges necessitating higher inventory levels. The rapid growth in work-in-process and raw materials inventories particularly point to increased production activity, potentially aligning with strategic growth initiatives or preparation for higher demand. The fluctuations in finished goods imply dynamic inventory management in response to market or operational conditions.