Stock Analysis on Net

Vertex Pharmaceuticals Inc. (NASDAQ:VRTX)

$24.99

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity

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Vertex Pharmaceuticals Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity

Microsoft Excel
Dec 31, 2025 Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021
Accounts payable
Product revenue accruals
Payroll and benefits
Research, development and commercial contract costs
Royalty payable
Tax related accruals
Capital related accruals
Other
Accrued expenses
Contract liabilities
Current operating lease liabilities
Foreign currency forward contracts
Upfront and milestones payable
Current finance lease liabilities
Other
Other current liabilities
Current liabilities
Long-term operating lease liabilities
Tax-related liabilities
Long-term finance lease liabilities
Contingent consideration
Other
Other long-term liabilities
Long-term liabilities
Total liabilities
Preferred stock, $0.01 par value; none issued and outstanding
Common stock, $0.01 par value
Additional paid-in capital
Accumulated other comprehensive income (loss)
Retained earnings
Shareholders’ equity
Total liabilities and shareholders’ equity

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 composition of liabilities and shareholders’ equity exhibited several notable shifts between 2021 and 2025. Total liabilities as a percentage of the total increased from 24.81% to 27.21%, while shareholders’ equity decreased slightly from 75.19% to 72.79% over the same period.

Current Liabilities
Current liabilities remained relatively stable, fluctuating between 15.11% and 15.95% of the total. Accrued expenses consistently represented the largest component of current liabilities, averaging approximately 12% of the total throughout the period. Product revenue accruals also constituted a significant portion, increasing from 6.31% in 2021 to 7.17% in 2022, peaking at 7.55% in 2023, and then decreasing to 7.07% in 2025. A new line item, foreign currency forward contracts, emerged in 2025, representing 0.31% of the total.
Long-Term Liabilities
Long-term liabilities demonstrated a more pronounced trend. Initially at 8.86% in 2021, they decreased to a low of 7.05% in 2023 before increasing substantially to 12.15% in 2025. This increase was primarily driven by a significant rise in long-term operating lease liabilities, which grew from 2.81% in 2021 to 7.20% in 2025. Tax-related liabilities also increased notably, from being absent in 2021 to 3.49% in 2025. Long-term finance lease liabilities decreased considerably, falling from 3.80% to 0.42% over the period.
Shareholders’ Equity Components
Within shareholders’ equity, a substantial shift occurred in the relative proportions of its components. Additional paid-in capital decreased significantly, from 51.23% in 2021 to 19.96% in 2025. Simultaneously, retained earnings increased considerably, rising from 23.83% in 2021 to 52.88% in 2025. Accumulated other comprehensive income (loss) fluctuated, starting at 0.12%, dropping to a loss of -0.06% in 2023, and then recovering to -0.06% in 2025. Common stock remained consistently low, at approximately 0.01% of the total.
Specific Accruals
Tax-related accruals experienced a significant decrease from 1.57% in 2021 to 0.40% in 2025. Capital related accruals were not present in 2021 and 2022, then increased to 0.19% in 2024 and 0.34% in 2025. Royalty payable decreased from 1.49% in 2021 to 1.08% in 2025. Research, development and commercial contract costs showed a slight decrease initially, then a small increase, ending at 0.96% in 2025.

Overall, the observed trends suggest a transition towards greater reliance on long-term financing, particularly operating leases, and an increasing contribution of retained earnings to shareholders’ equity, potentially indicating reinvestment of profits. The decrease in additional paid-in capital warrants further investigation.