Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
Paying user area
Try for free
Vertex Pharmaceuticals Inc. pages available for free this week:
- Income Statement
- Common-Size Balance Sheet: Assets
- Common Stock Valuation Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Selected Financial Data since 2005
- Return on Equity (ROE) since 2005
- Return on Assets (ROA) since 2005
- Debt to Equity since 2005
- Price to Sales (P/S) since 2005
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:
Vertex Pharmaceuticals Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity
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).
- Current liabilities trends
- Current liabilities as a percentage of total liabilities and shareholders’ equity remained relatively stable from 2020 to 2024, fluctuating slightly between 15.11% and 15.95%, ending at 15.82% in 2024. Among the components of current liabilities, product revenue accruals showed an increasing trend from 6.65% in 2020 to a peak of 7.55% in 2023, then slightly decreased to 7.18% in 2024. Accounts payable increased gradually from 1.32% to 1.83% over the period, indicating a moderate increase in short-term obligations to suppliers.
- Payroll and benefits decreased from 1.44% in 2020 to 1.3% in 2023 but then rose to 1.56% in 2024, showing some volatility. Research, development, and commercial contract costs as a percentage decreased initially but then increased, peaking at 1.42% in 2024 after a low in 2022. Royalty payable displayed a downward trend from 1.41% to 1.05% by 2023, then slightly rose to 1.2% in 2024. Tax-related accruals fluctuated significantly, doubling from 0.89% in 2020 to 1.57% in 2021 but subsequently declining and then partially recovering toward 0.71% by 2024.
- Accrued expenses and miscellaneous current liabilities
- Accrued expenses consistently represented the largest single component of current liabilities, ranging modestly from 11.96% to 12.5% between 2020 and 2021, then slightly decreasing to 11.68% in 2023 before rising again to 12.38% in 2024.
- Other current liabilities declined from 2.7% in 2020 to 1.61% in 2024. Contract liabilities showed a continuous decrease from 1.63% in 2020 to a low of 0.75% in 2023, followed by a minor increase to 0.92% in 2024. Milestones payable appeared only in 2023 and 2024 at low levels, evidencing a recent addition to current liabilities. Short-term lease liabilities experienced fluctuations but remained a small portion overall.
- Long-term liabilities developments
- Long-term liabilities as a portion of total liabilities and equity decreased steadily from 10.1% in 2020 to a low of 7.05% in 2023 but then sharply increased to 11.36% in 2024. This late increase was largely driven by a significant rise in long-term operating lease liabilities, which surged from 1.53% in 2023 to 6.85% in 2024, reversing a prior downward trend.
- Long-term finance lease liabilities steadily decreased from 4.59% in 2020 to a minimal level of 0.5% in 2024. Tax-related liabilities appeared starting in 2022, increasing modestly through 2024. Contingent consideration liabilities diminished considerably from 1.61% in 2020 to 0.34% by 2024. Other long-term liabilities increased slightly towards the end of the period, ultimately constituting 4% in 2024.
- Total liabilities and shareholders’ equity
- Total liabilities showed a general downward trend from 26.08% of total liabilities and shareholders’ equity in 2020 to 22.66% in 2023, before rising notably to 27.18% in 2024, primarily due to increases in long-term liabilities.
- Shareholders’ equity fluctuated inversely, increasing from 73.92% in 2020 to a peak of 77.34% in 2023, then declining to 72.82% in 2024. This decline aligns with the rise in total liabilities in 2024. Retained earnings as a component of equity increased significantly from 7.31% in 2020 up to 44.62% in 2023, then slightly decreased to 42.63% in 2024, indicating accumulation of profits over the years, with a small reduction in the latest period.
- Additional paid-in capital declined markedly from 67.17% in 2020 to 29.61% in 2024, suggesting that earlier equity contributions have diminished relative to other equity components, possibly due to stock buybacks, dilution, or reclassification.
- The accumulated other comprehensive income (loss) remained near zero, oscillating slightly between positive and negative values, having minimal effect on overall equity.
- Summary of financial position
- The company's financial structure demonstrates a tendency toward gradually increasing liabilities relative to equity in 2024 after several years of declining liabilities. The consistent growth in retained earnings reflects profitability accumulation, while the falling additional paid-in capital indicates changing equity composition. The sharp growth in long-term operating lease liabilities in 2024 is noteworthy and suggests a strategic or operational shift affecting long-term obligations.
- Current liabilities show relative stability in proportion to total funding sources, with some variations in specific accruals and payables. Overall, the company maintains a majority of funding through shareholders’ equity, though the increase in liabilities in 2024 may warrant closer monitoring of leverage and associated risks.