Stock Analysis on Net

Vertex Pharmaceuticals Inc. (NASDAQ:VRTX) 

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

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Accounts payable 413,000 364,900 303,900 195,000 155,139
Product revenue accruals 1,618,900 1,716,400 1,300,800 847,400 781,903
Payroll and benefits 352,100 295,000 246,500 191,300 169,387
Research, development and commercial contract costs 319,200 265,200 198,700 171,600 136,704
Royalty payable 271,000 237,600 215,000 200,400 165,404
Tax related accruals 161,100 99,500 123,300 211,300 104,173
Other 66,300 41,600 42,400 56,600 47,400
Accrued expenses 2,788,600 2,655,300 2,126,700 1,678,600 1,404,971
Milestones payable 32,500 222,500
Contract liabilities 206,800 170,300 159,600 171,700 191,519
Current operating lease liabilities 87,100 33,100 48,600 33,300 10,521
Current finance lease liabilities 5,200 50,600 40,800 46,900 42,434
Other 31,400 50,700 62,500 16,500 72,949
Other current liabilities 363,000 527,200 311,500 268,400 317,423
Current liabilities 3,564,600 3,547,400 2,742,100 2,142,000 1,877,533
Long-term operating lease liabilities 1,544,400 348,600 379,500 377,400 350,463
Long-term finance lease liabilities 112,800 376,100 430,800 509,800 539,042
Tax-related liabilities 698,600 681,400 452,800
Contingent consideration 76,900 77,400 114,400 186,500 189,600
Other 126,300 118,900 118,600 116,800 108,355
Other long-term liabilities 901,800 877,700 685,800 303,300 297,955
Long-term liabilities 2,559,000 1,602,400 1,496,100 1,190,500 1,187,460
Total liabilities 6,123,600 5,149,800 4,238,200 3,332,500 3,064,993
Preferred stock, $0.01 par value; none issued and outstanding
Common stock, $0.01 par value 2,600 2,600 2,600 2,500 2,599
Additional paid-in capital 6,672,400 7,449,700 7,386,500 6,880,800 7,894,027
Accumulated other comprehensive income (loss) 127,800 (14,300) 800 15,900 (68,480)
Retained earnings 9,606,800 10,142,400 6,522,800 3,200,800 858,669
Shareholders’ equity 16,409,600 17,580,400 13,912,700 10,100,000 8,686,815
Total liabilities and shareholders’ equity 22,533,200 22,730,200 18,150,900 13,432,500 11,751,808

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
Current liabilities show a consistent upward trend over the analyzed period, rising from approximately 1.88 billion USD at the end of 2020 to about 3.56 billion USD by the end of 2024. Significant contributors to this increase include accounts payable, which more than doubled from 155 million USD to 413 million USD, and product revenue accruals, which increased from 781 million USD to 1.62 billion USD, peaking in 2023. Payroll and benefits expenses also grew steadily, reaching 352 million USD in 2024 from 169 million USD in 2020. Research, development, and commercial contract costs expanded notably, nearly doubling over the period, reflecting increased investment in these areas. Tax-related accruals fluctuated, with a notable spike in 2021 followed by a reduction and then a rise again in 2024. Other current liabilities and accrued expenses consistently contributed to the growth, with accrued expenses reaching almost 2.79 billion USD in 2024.
Long-Term Liabilities
Long-term liabilities increased substantially, starting at approximately 1.19 billion USD in 2020 and more than doubling to 2.56 billion USD by 2024. Tax-related liabilities, absent in early years, appeared in 2022 at 452 million USD and rose steadily to nearly 699 million USD in 2024. Long-term operating lease liabilities surged dramatically in 2024 by more than four times compared to prior years, from roughly 0.35 billion USD to 1.54 billion USD, representing a significant shift in long-term obligations. Conversely, long-term finance lease liabilities declined substantially, from about 540 million USD in 2020 to 113 million USD in 2024. Contingent consideration liabilities fell steadily over the years, indicating reduced obligations under contingent agreements. Other long-term liabilities rose markedly, from 298 million USD to 902 million USD, suggesting expansion or increased recognition of miscellaneous long-term obligations.
Total Liabilities
Total liabilities showed marked growth, increasing from around 3.06 billion USD in 2020 to over 6.12 billion USD in 2024. This increase reflects the combined growth in current and long-term liabilities, with notable acceleration in recent years, particularly in 2023 and 2024. The significant increase in long-term operating lease liabilities and the emergence of tax-related liabilities are key factors in this overall growth.
Shareholders’ Equity
Shareholders’ equity expanded strongly from approximately 8.69 billion USD in 2020 to about 16.41 billion USD in 2024, with a peak in 2023. Retained earnings were the primary driver of this growth, climbing from 859 million USD to 9.61 billion USD, reflecting cumulative profitability or retained reserves over the period. Additional paid-in capital experienced fluctuations, rising between 2021 and 2023 but declining sharply in 2024, which may indicate share repurchases, changes in equity financing, or reclassifications. Accumulated other comprehensive income displayed variability, ending with a positive balance in 2024 after a few years of negative or near-zero amounts. Common stock remained relatively stable throughout the period.
Overall Financial Position
The total of liabilities and shareholders’ equity nearly doubled from approximately 11.75 billion USD at the end of 2020 to around 22.53 billion USD by the end of 2024, indicating significant growth in the company's balance sheet size. The data reveal an expanding financial structure with increased debt and equity financing. The increase in liabilities, particularly lease obligations and tax-related liabilities, alongside continued equity growth, reflects a mix of external financing and internal capital accumulation. The notable rise in current liabilities and accrued expenses suggests expanding operational activities and obligations. Meanwhile, the growth in retained earnings points to sustained profitability or reinvestment of earnings during this period.