Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
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- Income Statement
- Balance Sheet: Assets
- Common-Size Income Statement
- Common-Size Balance Sheet: Assets
- Enterprise Value to EBITDA (EV/EBITDA)
- Capital Asset Pricing Model (CAPM)
- Operating Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Current Ratio since 2005
- Total Asset Turnover since 2005
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Vertex Pharmaceuticals Inc., common-size consolidated balance sheet: liabilities and stockholders’ 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.