Debt to Equity
since 2005
Calculation
Vertex Pharmaceuticals Inc., debt to equity, long-term trends, calculation
| Debt to equity | = | Total long-term obligations1 | ÷ | Shareholders’ equity1 | |
|---|---|---|---|---|---|
| Dec 31, 2024 | 0.01 | = | 118,000) | ÷ | 16,409,600) |
| Dec 31, 2023 | 0.02 | = | 426,700) | ÷ | 17,580,400) |
| Dec 31, 2022 | 0.03 | = | 471,600) | ÷ | 13,912,700) |
| Dec 31, 2021 | 0.06 | = | 556,700) | ÷ | 10,100,000) |
| Dec 31, 2020 | 0.07 | = | 581,476) | ÷ | 8,686,815) |
| Dec 31, 2019 | 0.09 | = | 568,869) | ÷ | 6,085,244) |
| Dec 31, 2018 | 0.13 | = | 586,821) | ÷ | 4,435,203) |
| Dec 31, 2017 | 0.29 | = | 583,902) | ÷ | 2,028,579) |
| Dec 31, 2016 | 0.71 | = | 821,335) | ÷ | 1,156,582) |
| Dec 31, 2015 | 0.86 | = | 810,981) | ÷ | 939,967) |
| Dec 31, 2014 | 0.75 | = | 807,141) | ÷ | 1,075,006) |
| Dec 31, 2013 | 0.36 | = | 489,691) | ÷ | 1,356,405) |
| Dec 31, 2012 | 0.68 | = | 683,201) | ÷ | 999,180) |
| Dec 31, 2011 | 0.58 | = | 455,950) | ÷ | 786,843) |
| Dec 31, 2010 | 1.07 | = | 536,991) | ÷ | 503,973) |
| Dec 31, 2009 | 0.14 | = | 153,836) | ÷ | 1,096,346) |
| Dec 31, 2008 | 1.20 | = | 287,500) | ÷ | 238,874) |
| Dec 31, 2007 | 0.07 | = | 19,997) | ÷ | 271,295) |
| Dec 31, 2006 | 0.24 | = | 121,747) | ÷ | 505,935) |
| Dec 31, 2005 | 0.75 | = | 180,097) | ÷ | 239,176) |
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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in thousands
- Total Long-Term Obligations
- The total long-term obligations exhibit significant fluctuations over the period analyzed. Initially, the liabilities stood at approximately 180 million US dollars in 2005, followed by a sharp decline to around 20 million by 2007. However, a notable increase occurred in 2008, peaking at 287.5 million, before showing erratic changes, including a considerable rise to over 800 million in 2014 and 2015. From 2016 onward, the obligations generally trended downward, falling from approximately 821 million in 2016 to 118 million by 2024, indicating a substantial reduction in long-term debt in recent years.
- Shareholders’ Equity
- Shareholders’ equity displayed a robust growth trajectory across the years. Starting at around 239 million in 2005, it experienced moderate fluctuation until 2009, when it reached over 1 billion. Post-2009, the equity increased steadily, with significant acceleration evident after 2012. The most remarkable rise occurred between 2016 and 2022, where equity surged from approximately 1.16 billion to over 13.9 billion. Despite a slight decrease in 2024 to about 16.4 billion, the overall trend signals strong capital accumulation and growing shareholder value.
- Debt to Equity Ratio
- The debt to equity ratio mirrored the dynamics of both liabilities and equity. Early values ranged from 0.07 to 1.2, indicating high variability in leverage. The ratio peaked in 2008 at 1.2, suggesting a period of relatively high debt compared to equity. After this peak, the ratio demonstrated a consistent downward trend, reflecting a gradual decline in leverage. By 2024, the ratio had diminished to 0.01, signifying very low use of long-term debt relative to equity and a conservative capital structure with increased financial stability.
- Overall Analysis
- The financial data reveals a company that has managed to significantly strengthen its equity base while reducing its reliance on long-term debt over the years. The declining debt to equity ratio and the reduction in total long-term obligations in the latter years portray an improving financial leverage situation. This indicates a shift towards a more solid equity-financed structure, possibly enhancing creditworthiness and reducing financial risk. Additionally, the substantial growth in shareholders’ equity suggests successful capital retention or infusion and potential growth in assets or profitability, contributing to more robust financial health.
Comparison to Competitors
Vertex Pharmaceuticals Inc., debt to equity, long-term trends, comparison to competitors
| Vertex Pharmaceuticals Inc. | AbbVie Inc. | Amgen Inc. | Bristol-Myers Squibb Co. | Danaher Corp. | Eli Lilly & Co. | Gilead Sciences Inc. | Johnson & Johnson | Merck & Co. Inc. | Pfizer Inc. | Regeneron Pharmaceuticals Inc. | Thermo Fisher Scientific Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | 0.01 | 20.19 | 10.23 | 3.04 | 0.32 | 2.37 | 1.38 | 0.51 | 0.80 | 0.73 | 0.09 | 0.63 |
| Dec 31, 2023 | 0.02 | 5.73 | 10.37 | 1.35 | 0.34 | 2.34 | 1.09 | 0.43 | 0.93 | 0.81 | 0.10 | 0.75 |
| Dec 31, 2022 | 0.03 | 3.67 | 10.64 | 1.27 | 0.39 | 1.52 | 1.19 | 0.52 | 0.67 | 0.37 | 0.12 | 0.78 |
| Dec 31, 2021 | 0.06 | 4.98 | 4.97 | 1.24 | 0.49 | 1.88 | 1.27 | 0.46 | 0.87 | 0.50 | 0.14 | 0.85 |
| Dec 31, 2020 | 0.07 | 6.58 | 3.51 | 1.34 | 0.53 | 2.94 | 1.73 | 0.56 | 1.26 | 0.63 | 0.24 | 0.63 |
| Dec 31, 2019 | 0.09 | — | 3.09 | 0.91 | 0.72 | 5.88 | 1.09 | 0.47 | 1.02 | 0.83 | 0.06 | 0.60 |
| Dec 31, 2018 | 0.13 | — | 2.71 | 0.52 | 0.35 | 1.30 | 1.28 | 0.51 | 0.94 | 0.66 | 0.08 | 0.69 |
| Dec 31, 2017 | 0.29 | 7.33 | 1.40 | 0.68 | 0.40 | 1.18 | 1.64 | 0.57 | 0.71 | 0.60 | 0.11 | 0.83 |
| Dec 31, 2016 | 0.71 | 7.95 | 1.16 | 0.41 | 0.53 | 0.74 | 1.39 | 0.39 | 0.62 | 0.71 | 0.11 | 0.77 |
| Dec 31, 2015 | 0.86 | 8.03 | 1.12 | 0.47 | 0.54 | 0.55 | 1.20 | 0.28 | 0.59 | 0.60 | 0.10 | 0.59 |
| Dec 31, 2014 | 0.75 | 8.62 | 1.19 | 0.53 | 0.15 | 0.52 | 0.80 | 0.27 | 0.44 | 0.51 | 0.18 | 0.71 |
| Dec 31, 2013 | 0.36 | 3.28 | 1.45 | 0.55 | 0.16 | 0.30 | 0.58 | 0.25 | 0.50 | 0.48 | 0.26 | 0.62 |
| Dec 31, 2012 | 0.68 | 4.66 | 1.39 | 0.54 | 0.28 | 0.37 | 0.88 | 0.25 | 0.39 | 0.46 | 0.37 | 0.46 |
| Dec 31, 2011 | 0.58 | — | 1.13 | 0.34 | 0.31 | 0.52 | 1.13 | 0.34 | 0.32 | 0.47 | 0.90 | 0.47 |
| Dec 31, 2010 | 1.07 | — | 0.56 | 0.35 | 0.21 | 0.56 | 0.59 | 0.30 | 0.33 | 0.50 | 0.31 | 0.14 |
| Dec 31, 2009 | 0.14 | — | 0.47 | 0.43 | 0.25 | 0.70 | 0.18 | 0.29 | 0.30 | 0.54 | 0.27 | 0.14 |
| Dec 31, 2008 | 1.20 | — | 0.50 | 0.55 | 0.27 | 1.55 | 0.31 | 0.28 | 0.33 | 0.30 | 0.00 | 0.14 |
| Dec 31, 2007 | 0.07 | — | 0.63 | 0.59 | 0.41 | 0.37 | 0.38 | 0.22 | 0.32 | 0.20 | 0.43 | 0.15 |
| Dec 31, 2006 | 0.24 | — | 0.48 | 0.74 | 0.37 | 0.34 | 0.77 | 0.17 | 0.39 | 0.11 | 0.92 | 0.19 |
| Dec 31, 2005 | 0.75 | — | 0.19 | 0.77 | 0.21 | 0.60 | 0.10 | 0.07 | 0.45 | 0.27 | 1.75 | 0.21 |
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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Pharmaceuticals, Biotechnology & Life Sciences)
Vertex Pharmaceuticals Inc., debt to equity, long-term trends, comparison to sector (pharmaceuticals, biotechnology & life sciences)
| Vertex Pharmaceuticals Inc. | Pharmaceuticals, Biotechnology & Life Sciences | |
|---|---|---|
| Dec 31, 2024 | 0.01 | 1.04 |
| Dec 31, 2023 | 0.02 | 0.97 |
| Dec 31, 2022 | 0.03 | 0.80 |
| Dec 31, 2021 | 0.06 | 0.93 |
| Dec 31, 2020 | 0.07 | 1.12 |
| Dec 31, 2019 | 0.09 | 1.09 |
| Dec 31, 2018 | 0.13 | 0.93 |
| Dec 31, 2017 | 0.29 | 0.87 |
| Dec 31, 2016 | 0.71 | 0.79 |
| Dec 31, 2015 | 0.86 | 0.68 |
| Dec 31, 2014 | 0.75 | 0.55 |
| Dec 31, 2013 | 0.36 | 0.52 |
| Dec 31, 2012 | 0.68 | 0.51 |
| Dec 31, 2011 | 0.58 | 0.46 |
| Dec 31, 2010 | 1.07 | 0.40 |
| Dec 31, 2009 | 0.14 | 0.39 |
| Dec 31, 2008 | 1.20 | 0.37 |
| Dec 31, 2007 | 0.07 | 0.30 |
| Dec 31, 2006 | 0.24 | 0.25 |
| Dec 31, 2005 | 0.75 | 0.29 |
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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Health Care)
Vertex Pharmaceuticals Inc., debt to equity, long-term trends, comparison to industry (health care)
| Vertex Pharmaceuticals Inc. | Health Care | |
|---|---|---|
| Dec 31, 2024 | 0.01 | 0.87 |
| Dec 31, 2023 | 0.02 | 0.82 |
| Dec 31, 2022 | 0.03 | 0.73 |
| Dec 31, 2021 | 0.06 | 0.79 |
| Dec 31, 2020 | 0.07 | 0.92 |
| Dec 31, 2019 | 0.09 | 0.92 |
| Dec 31, 2018 | 0.13 | 0.86 |
| Dec 31, 2017 | 0.29 | 0.81 |
| Dec 31, 2016 | 0.71 | 0.76 |
| Dec 31, 2015 | 0.86 | 0.69 |
| Dec 31, 2014 | 0.75 | 0.52 |
| Dec 31, 2013 | 0.36 | 0.49 |
| Dec 31, 2012 | 0.68 | 0.51 |
| Dec 31, 2011 | 0.58 | 0.45 |
| Dec 31, 2010 | 1.07 | 0.42 |
| Dec 31, 2009 | 0.14 | 0.41 |
| Dec 31, 2008 | 1.20 | 0.41 |
| Dec 31, 2007 | 0.07 | 0.36 |
| Dec 31, 2006 | 0.24 | 0.33 |
| Dec 31, 2005 | 0.75 | 0.30 |
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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).