Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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

US$ in thousands

	Dec 31, 2025	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021
Accounts payable	461,700)	413,000)	364,900)	303,900)	195,000)
Product revenue accruals	1,814,100)	1,618,900)	1,716,400)	1,300,800)	847,400)
Payroll and benefits	397,700)	352,100)	295,000)	246,500)	191,300)
Research, development and commercial contract costs	246,900)	272,700)	265,200)	198,700)	171,600)
Royalty payable	276,700)	271,000)	237,600)	215,000)	200,400)
Tax related accruals	103,100)	161,100)	99,500)	123,300)	211,300)
Capital related accruals	86,000)	43,500)	—)	—)	—)
Other	46,700)	69,300)	41,600)	42,400)	56,600)
Accrued expenses	2,971,200)	2,788,600)	2,655,300)	2,126,700)	1,678,600)
Contract liabilities	171,800)	206,800)	170,300)	159,600)	171,700)
Current operating lease liabilities	77,300)	87,100)	33,100)	48,600)	33,300)
Foreign currency forward contracts	79,400)	—)	—)	—)	—)
Upfront and milestones payable	51,500)	32,500)	222,500)	—)	—)
Current finance lease liabilities	5,500)	5,200)	50,600)	40,800)	46,900)
Other	42,800)	31,400)	50,700)	62,500)	16,500)
Other current liabilities	428,300)	363,000)	527,200)	311,500)	268,400)
Current liabilities	3,861,200)	3,564,600)	3,547,400)	2,742,100)	2,142,000)
Long-term operating lease liabilities	1,846,500)	1,544,400)	348,600)	379,500)	377,400)
Tax-related liabilities	895,400)	698,600)	681,400)	452,800)	—)
Long-term finance lease liabilities	106,700)	112,800)	376,100)	430,800)	509,800)
Contingent consideration	79,000)	76,900)	77,400)	114,400)	186,500)
Other	188,400)	126,300)	118,900)	118,600)	116,800)
Other long-term liabilities	1,269,500)	1,014,600)	1,253,800)	1,116,600)	813,100)
Long-term liabilities	3,116,000)	2,559,000)	1,602,400)	1,496,100)	1,190,500)
Total liabilities	6,977,200)	6,123,600)	5,149,800)	4,238,200)	3,332,500)
Preferred stock, $0.01 par value; none issued and outstanding	—)	—)	—)	—)	—)
Common stock, $0.01 par value	2,500)	2,600)	2,600)	2,600)	2,500)
Additional paid-in capital	5,119,200)	6,672,400)	7,449,700)	7,386,500)	6,880,800)
Accumulated other comprehensive income (loss)	(15,900)	127,800)	(14,300)	800)	15,900)
Retained earnings	13,560,000)	9,606,800)	10,142,400)	6,522,800)	3,200,800)
Shareholders’ equity	18,665,800)	16,409,600)	17,580,400)	13,912,700)	10,100,000)
Total liabilities and shareholders’ equity	25,643,000)	22,533,200)	22,730,200)	18,150,900)	13,432,500)

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).

Total liabilities exhibited a consistent upward trend from 2021 to 2025, increasing from US$3,332.5 million to US$6,977.2 million. This growth was mirrored by a corresponding increase in total shareholders’ equity, rising from US$10,100 million in 2021 to US$18,665.8 million in 2025, although with a slight decrease between 2023 and 2024. Consequently, the overall size of the company, as measured by total liabilities and shareholders’ equity, expanded significantly over the five-year period.

Current Liabilities: Current liabilities demonstrated substantial growth between 2021 and 2023, increasing from US$2,142 million to US$3,547.4 million. While the rate of increase slowed in 2024 and 2025, current liabilities remained elevated, reaching US$3,861.2 million. A significant component of this growth was accrued expenses, which nearly doubled from US$1,678.6 million in 2021 to US$2,971.2 million in 2025. Other current liabilities also contributed significantly to the increase, more than doubling from US$268.4 million to US$428.3 million. The introduction of foreign currency forward contracts in 2025, totaling US$79.4 million, represents a new element within current liabilities.
Long-Term Liabilities: Long-term liabilities experienced a more dramatic increase than current liabilities, growing from US$1,190.5 million in 2021 to US$3,116 million in 2025. This increase was largely driven by a substantial rise in long-term operating lease liabilities, which increased from US$377.4 million to US$1,846.5 million over the period. Tax-related liabilities also increased significantly, from no value in 2021 to US$895.4 million in 2025. Long-term finance lease liabilities decreased over the period, falling from US$509.8 million to US$106.7 million.
Shareholders’ Equity: Shareholders’ equity increased steadily from 2021 to 2023, rising from US$10,100 million to US$17,580.4 million. A slight decrease was observed in 2024, to US$16,409.6 million, before recovering to US$18,665.8 million in 2025. This growth was primarily fueled by an increase in retained earnings, which more than tripled from US$3,200.8 million in 2021 to US$13,560 million in 2025. Additional paid-in capital decreased from US$6,880.8 million in 2021 to US$5,119.2 million in 2025. Accumulated other comprehensive income (loss) fluctuated, moving from a positive US$15.9 million in 2021 to a negative US$15.9 million in 2025.
Specific Accruals: Product revenue accruals represent a substantial portion of total liabilities, increasing from US$847.4 million in 2021 to US$1,814.1 million in 2025. Payroll and benefits accruals also showed consistent growth, rising from US$191.3 million to US$397.7 million over the same period. Tax related accruals were volatile, decreasing from US$211.3 million in 2021 to US$99.5 million in 2023, then increasing to US$103.1 million in 2025. Capital related accruals were not present in 2021 and 2022, but grew to US$86.0 million in 2025.

In summary, the company experienced significant growth in both liabilities and shareholders’ equity between 2021 and 2025. The increase in liabilities was driven by growth in both current and long-term obligations, particularly accrued expenses and operating lease liabilities. Shareholders’ equity growth was primarily attributable to increased retained earnings, indicating profitability. The fluctuations in certain accrual accounts warrant further investigation to understand the underlying business drivers.

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Vertex Pharmaceuticals Inc. (NASDAQ:VRTX)

Balance Sheet: Liabilities and Stockholders’ Equity