Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Vertex Pharmaceuticals Inc., solvency ratios
Based on: 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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Vertex Pharmaceuticals Inc. debt to equity ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Vertex Pharmaceuticals Inc. debt to equity ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Vertex Pharmaceuticals Inc. debt to capital ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Vertex Pharmaceuticals Inc. debt to capital ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Vertex Pharmaceuticals Inc. debt to assets ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Vertex Pharmaceuticals Inc. debt to assets ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Vertex Pharmaceuticals Inc. financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Vertex Pharmaceuticals Inc. interest coverage ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Vertex Pharmaceuticals Inc. fixed charge coverage ratio improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Equity
Vertex Pharmaceuticals Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current finance lease liabilities | 50,600) | 40,800) | 46,900) | 42,434) | 38,794) | |
| Long-term finance lease liabilities | 376,100) | 430,800) | 509,800) | 539,042) | 538,576) | |
| Total debt | 426,700) | 471,600) | 556,700) | 581,476) | 577,370) | |
| Shareholders’ equity | 17,580,400) | 13,912,700) | 10,100,000) | 8,686,815) | 6,085,244) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.02 | 0.03 | 0.06 | 0.07 | 0.09 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| AbbVie Inc. | 5.73 | 3.67 | 4.98 | 6.58 | — | |
| Amgen Inc. | 10.37 | 10.64 | 4.97 | 3.51 | 3.09 | |
| Bristol-Myers Squibb Co. | 1.35 | 1.27 | 1.24 | 1.34 | 0.91 | |
| Eli Lilly & Co. | 2.34 | 1.52 | 1.88 | 2.94 | 5.88 | |
| Gilead Sciences Inc. | 1.09 | 1.19 | 1.27 | 1.73 | 1.09 | |
| Johnson & Johnson | 0.43 | 0.52 | 0.46 | 0.56 | 0.47 | |
| Merck & Co. Inc. | 0.93 | 0.67 | 0.87 | 1.26 | 1.02 | |
| Pfizer Inc. | 0.81 | 0.37 | 0.50 | 0.63 | 0.83 | |
| Regeneron Pharmaceuticals Inc. | 0.10 | 0.12 | 0.14 | 0.24 | 0.06 | |
| Thermo Fisher Scientific Inc. | 0.75 | 0.78 | 0.85 | 0.63 | 0.60 | |
| Debt to Equity, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 1.12 | 0.88 | 1.01 | 1.24 | 1.15 | |
| Debt to Equity, Industry | ||||||
| Health Care | 0.83 | 0.74 | 0.80 | 0.90 | 0.91 | |
Based on: 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).
1 2023 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= 426,700 ÷ 17,580,400 = 0.02
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Vertex Pharmaceuticals Inc. debt to equity ratio improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Equity (including Operating Lease Liability)
Vertex Pharmaceuticals Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current finance lease liabilities | 50,600) | 40,800) | 46,900) | 42,434) | 38,794) | |
| Long-term finance lease liabilities | 376,100) | 430,800) | 509,800) | 539,042) | 538,576) | |
| Total debt | 426,700) | 471,600) | 556,700) | 581,476) | 577,370) | |
| Current operating lease liabilities | 33,100) | 48,600) | 33,300) | 10,521) | 11,504) | |
| Long-term operating lease liabilities | 348,600) | 379,500) | 377,400) | 350,463) | 84,292) | |
| Total debt (including operating lease liability) | 808,400) | 899,700) | 967,400) | 942,460) | 673,166) | |
| Shareholders’ equity | 17,580,400) | 13,912,700) | 10,100,000) | 8,686,815) | 6,085,244) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.05 | 0.06 | 0.10 | 0.11 | 0.11 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| AbbVie Inc. | 5.82 | 3.72 | 5.03 | 6.66 | — | |
| Amgen Inc. | 10.50 | 10.83 | 5.07 | 3.55 | 3.15 | |
| Bristol-Myers Squibb Co. | 1.41 | 1.31 | 1.27 | 1.37 | 0.92 | |
| Eli Lilly & Co. | 2.44 | 1.59 | 1.96 | 3.06 | 6.11 | |
| Gilead Sciences Inc. | 1.12 | 1.22 | 1.30 | 1.76 | 1.12 | |
| Johnson & Johnson | 0.44 | 0.53 | 0.47 | 0.57 | 0.48 | |
| Merck & Co. Inc. | 0.97 | 0.70 | 0.91 | 1.32 | 1.06 | |
| Pfizer Inc. | 0.84 | 0.41 | 0.54 | 0.65 | 0.85 | |
| Regeneron Pharmaceuticals Inc. | 0.11 | 0.12 | 0.15 | 0.25 | 0.07 | |
| Thermo Fisher Scientific Inc. | 0.78 | 0.82 | 0.89 | 0.65 | 0.62 | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 1.15 | 0.92 | 1.04 | 1.27 | 1.18 | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.88 | 0.79 | 0.85 | 0.96 | 0.97 | |
Based on: 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).
1 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity
= 808,400 ÷ 17,580,400 = 0.05
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Vertex Pharmaceuticals Inc. debt to equity ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Capital
Vertex Pharmaceuticals Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current finance lease liabilities | 50,600) | 40,800) | 46,900) | 42,434) | 38,794) | |
| Long-term finance lease liabilities | 376,100) | 430,800) | 509,800) | 539,042) | 538,576) | |
| Total debt | 426,700) | 471,600) | 556,700) | 581,476) | 577,370) | |
| Shareholders’ equity | 17,580,400) | 13,912,700) | 10,100,000) | 8,686,815) | 6,085,244) | |
| Total capital | 18,007,100) | 14,384,300) | 10,656,700) | 9,268,291) | 6,662,614) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.02 | 0.03 | 0.05 | 0.06 | 0.09 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| AbbVie Inc. | 0.85 | 0.79 | 0.83 | 0.87 | 1.14 | |
| Amgen Inc. | 0.91 | 0.91 | 0.83 | 0.78 | 0.76 | |
| Bristol-Myers Squibb Co. | 0.57 | 0.56 | 0.55 | 0.57 | 0.48 | |
| Eli Lilly & Co. | 0.70 | 0.60 | 0.65 | 0.75 | 0.85 | |
| Gilead Sciences Inc. | 0.52 | 0.54 | 0.56 | 0.63 | 0.52 | |
| Johnson & Johnson | 0.30 | 0.34 | 0.31 | 0.36 | 0.32 | |
| Merck & Co. Inc. | 0.48 | 0.40 | 0.46 | 0.56 | 0.50 | |
| Pfizer Inc. | 0.45 | 0.27 | 0.33 | 0.39 | 0.45 | |
| Regeneron Pharmaceuticals Inc. | 0.09 | 0.11 | 0.13 | 0.20 | 0.06 | |
| Thermo Fisher Scientific Inc. | 0.43 | 0.44 | 0.46 | 0.39 | 0.37 | |
| Debt to Capital, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.53 | 0.47 | 0.50 | 0.55 | 0.54 | |
| Debt to Capital, Industry | ||||||
| Health Care | 0.45 | 0.42 | 0.44 | 0.47 | 0.48 | |
Based on: 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).
1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 426,700 ÷ 18,007,100 = 0.02
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Vertex Pharmaceuticals Inc. debt to capital ratio improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Capital (including Operating Lease Liability)
Vertex Pharmaceuticals Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current finance lease liabilities | 50,600) | 40,800) | 46,900) | 42,434) | 38,794) | |
| Long-term finance lease liabilities | 376,100) | 430,800) | 509,800) | 539,042) | 538,576) | |
| Total debt | 426,700) | 471,600) | 556,700) | 581,476) | 577,370) | |
| Current operating lease liabilities | 33,100) | 48,600) | 33,300) | 10,521) | 11,504) | |
| Long-term operating lease liabilities | 348,600) | 379,500) | 377,400) | 350,463) | 84,292) | |
| Total debt (including operating lease liability) | 808,400) | 899,700) | 967,400) | 942,460) | 673,166) | |
| Shareholders’ equity | 17,580,400) | 13,912,700) | 10,100,000) | 8,686,815) | 6,085,244) | |
| Total capital (including operating lease liability) | 18,388,800) | 14,812,400) | 11,067,400) | 9,629,275) | 6,758,410) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.04 | 0.06 | 0.09 | 0.10 | 0.10 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| AbbVie Inc. | 0.85 | 0.79 | 0.83 | 0.87 | 1.14 | |
| Amgen Inc. | 0.91 | 0.92 | 0.84 | 0.78 | 0.76 | |
| Bristol-Myers Squibb Co. | 0.58 | 0.57 | 0.56 | 0.58 | 0.48 | |
| Eli Lilly & Co. | 0.71 | 0.61 | 0.66 | 0.75 | 0.86 | |
| Gilead Sciences Inc. | 0.53 | 0.55 | 0.56 | 0.64 | 0.53 | |
| Johnson & Johnson | 0.31 | 0.35 | 0.32 | 0.36 | 0.33 | |
| Merck & Co. Inc. | 0.49 | 0.41 | 0.48 | 0.57 | 0.51 | |
| Pfizer Inc. | 0.46 | 0.29 | 0.35 | 0.39 | 0.46 | |
| Regeneron Pharmaceuticals Inc. | 0.10 | 0.11 | 0.13 | 0.20 | 0.07 | |
| Thermo Fisher Scientific Inc. | 0.44 | 0.45 | 0.47 | 0.40 | 0.38 | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.54 | 0.48 | 0.51 | 0.56 | 0.54 | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.47 | 0.44 | 0.46 | 0.49 | 0.49 | |
Based on: 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).
1 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 808,400 ÷ 18,388,800 = 0.04
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Vertex Pharmaceuticals Inc. debt to capital ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Assets
Vertex Pharmaceuticals Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current finance lease liabilities | 50,600) | 40,800) | 46,900) | 42,434) | 38,794) | |
| Long-term finance lease liabilities | 376,100) | 430,800) | 509,800) | 539,042) | 538,576) | |
| Total debt | 426,700) | 471,600) | 556,700) | 581,476) | 577,370) | |
| Total assets | 22,730,200) | 18,150,900) | 13,432,500) | 11,751,808) | 8,318,465) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.02 | 0.03 | 0.04 | 0.05 | 0.07 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| AbbVie Inc. | 0.44 | 0.46 | 0.52 | 0.57 | 0.75 | |
| Amgen Inc. | 0.67 | 0.60 | 0.54 | 0.52 | 0.50 | |
| Bristol-Myers Squibb Co. | 0.42 | 0.41 | 0.41 | 0.43 | 0.36 | |
| Eli Lilly & Co. | 0.39 | 0.33 | 0.35 | 0.36 | 0.39 | |
| Gilead Sciences Inc. | 0.40 | 0.40 | 0.39 | 0.46 | 0.40 | |
| Johnson & Johnson | 0.18 | 0.21 | 0.19 | 0.20 | 0.18 | |
| Merck & Co. Inc. | 0.33 | 0.28 | 0.31 | 0.35 | 0.31 | |
| Pfizer Inc. | 0.32 | 0.18 | 0.21 | 0.26 | 0.31 | |
| Regeneron Pharmaceuticals Inc. | 0.08 | 0.09 | 0.11 | 0.16 | 0.05 | |
| Thermo Fisher Scientific Inc. | 0.35 | 0.35 | 0.37 | 0.31 | 0.30 | |
| Debt to Assets, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.36 | 0.32 | 0.33 | 0.37 | 0.36 | |
| Debt to Assets, Industry | ||||||
| Health Care | 0.29 | 0.27 | 0.29 | 0.30 | 0.31 | |
Based on: 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).
1 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 426,700 ÷ 22,730,200 = 0.02
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Vertex Pharmaceuticals Inc. debt to assets ratio improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Assets (including Operating Lease Liability)
Vertex Pharmaceuticals Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current finance lease liabilities | 50,600) | 40,800) | 46,900) | 42,434) | 38,794) | |
| Long-term finance lease liabilities | 376,100) | 430,800) | 509,800) | 539,042) | 538,576) | |
| Total debt | 426,700) | 471,600) | 556,700) | 581,476) | 577,370) | |
| Current operating lease liabilities | 33,100) | 48,600) | 33,300) | 10,521) | 11,504) | |
| Long-term operating lease liabilities | 348,600) | 379,500) | 377,400) | 350,463) | 84,292) | |
| Total debt (including operating lease liability) | 808,400) | 899,700) | 967,400) | 942,460) | 673,166) | |
| Total assets | 22,730,200) | 18,150,900) | 13,432,500) | 11,751,808) | 8,318,465) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.04 | 0.05 | 0.07 | 0.08 | 0.08 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| AbbVie Inc. | 0.45 | 0.46 | 0.53 | 0.58 | 0.75 | |
| Amgen Inc. | 0.67 | 0.61 | 0.56 | 0.53 | 0.51 | |
| Bristol-Myers Squibb Co. | 0.44 | 0.42 | 0.42 | 0.44 | 0.37 | |
| Eli Lilly & Co. | 0.41 | 0.34 | 0.36 | 0.37 | 0.41 | |
| Gilead Sciences Inc. | 0.41 | 0.41 | 0.40 | 0.47 | 0.41 | |
| Johnson & Johnson | 0.18 | 0.22 | 0.19 | 0.21 | 0.18 | |
| Merck & Co. Inc. | 0.34 | 0.29 | 0.33 | 0.37 | 0.32 | |
| Pfizer Inc. | 0.33 | 0.20 | 0.23 | 0.27 | 0.32 | |
| Regeneron Pharmaceuticals Inc. | 0.08 | 0.09 | 0.11 | 0.16 | 0.05 | |
| Thermo Fisher Scientific Inc. | 0.37 | 0.37 | 0.38 | 0.33 | 0.32 | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 0.37 | 0.33 | 0.34 | 0.38 | 0.37 | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Health Care | 0.31 | 0.29 | 0.31 | 0.33 | 0.33 | |
Based on: 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).
1 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 808,400 ÷ 22,730,200 = 0.04
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Vertex Pharmaceuticals Inc. debt to assets ratio (including operating lease liability) improved from 2021 to 2022 and from 2022 to 2023. |
Financial Leverage
Vertex Pharmaceuticals Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total assets | 22,730,200) | 18,150,900) | 13,432,500) | 11,751,808) | 8,318,465) | |
| Shareholders’ equity | 17,580,400) | 13,912,700) | 10,100,000) | 8,686,815) | 6,085,244) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 1.29 | 1.30 | 1.33 | 1.35 | 1.37 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| AbbVie Inc. | 13.00 | 8.04 | 9.51 | 11.51 | — | |
| Amgen Inc. | 15.59 | 17.79 | 9.13 | 6.69 | 6.17 | |
| Bristol-Myers Squibb Co. | 3.23 | 3.12 | 3.04 | 3.13 | 2.52 | |
| Eli Lilly & Co. | 5.94 | 4.65 | 5.44 | 8.27 | 15.07 | |
| Gilead Sciences Inc. | 2.72 | 2.97 | 3.23 | 3.76 | 2.74 | |
| Johnson & Johnson | 2.44 | 2.44 | 2.46 | 2.76 | 2.65 | |
| Merck & Co. Inc. | 2.84 | 2.37 | 2.77 | 3.62 | 3.26 | |
| Pfizer Inc. | 2.54 | 2.06 | 2.35 | 2.44 | 2.65 | |
| Regeneron Pharmaceuticals Inc. | 1.27 | 1.29 | 1.36 | 1.56 | 1.34 | |
| Thermo Fisher Scientific Inc. | 2.11 | 2.21 | 2.33 | 2.00 | 1.97 | |
| Financial Leverage, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 3.12 | 2.80 | 3.04 | 3.39 | 3.22 | |
| Financial Leverage, Industry | ||||||
| Health Care | 2.83 | 2.69 | 2.79 | 2.95 | 2.93 | |
Based on: 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).
1 2023 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= 22,730,200 ÷ 17,580,400 = 1.29
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Vertex Pharmaceuticals Inc. financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023. |
Interest Coverage
Vertex Pharmaceuticals Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | 3,619,600) | 3,322,000) | 2,342,100) | 2,711,647) | 1,176,810) | |
| Add: Income tax expense | 760,200) | 910,400) | 388,300) | 405,151) | 218,109) | |
| Add: Interest expense | 44,100) | 54,800) | 61,500) | 58,151) | 58,502) | |
| Earnings before interest and tax (EBIT) | 4,423,900) | 4,287,200) | 2,791,900) | 3,174,949) | 1,453,421) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 100.32 | 78.23 | 45.40 | 54.60 | 24.84 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| AbbVie Inc. | 3.81 | 7.04 | 6.36 | 2.38 | 5.72 | |
| Amgen Inc. | 3.73 | 6.22 | 6.60 | 7.44 | 8.09 | |
| Bristol-Myers Squibb Co. | 8.24 | 7.26 | 7.07 | -3.84 | 8.58 | |
| Eli Lilly & Co. | 14.49 | 21.53 | 19.12 | 21.11 | 14.15 | |
| Gilead Sciences Inc. | 8.27 | 7.22 | 9.27 | 2.70 | 6.19 | |
| Johnson & Johnson | 20.51 | 79.71 | 125.46 | 83.07 | 55.49 | |
| Merck & Co. Inc. | 2.65 | 18.09 | 18.22 | 11.58 | 13.84 | |
| Pfizer Inc. | 1.48 | 29.05 | 19.83 | 6.17 | 12.23 | |
| Regeneron Pharmaceuticals Inc. | 58.52 | 82.80 | 163.75 | 67.97 | 81.43 | |
| Thermo Fisher Scientific Inc. | 5.54 | 11.56 | 17.49 | 14.07 | 7.02 | |
| Interest Coverage, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 5.85 | 14.47 | 14.24 | 7.00 | 10.97 | |
| Interest Coverage, Industry | ||||||
| Health Care | 6.93 | 12.44 | 12.11 | 7.72 | 8.87 | |
Based on: 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).
1 2023 Calculation
Interest coverage = EBIT ÷ Interest expense
= 4,423,900 ÷ 44,100 = 100.32
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Vertex Pharmaceuticals Inc. interest coverage ratio improved from 2021 to 2022 and from 2022 to 2023. |
Fixed Charge Coverage
Vertex Pharmaceuticals Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | 3,619,600) | 3,322,000) | 2,342,100) | 2,711,647) | 1,176,810) | |
| Add: Income tax expense | 760,200) | 910,400) | 388,300) | 405,151) | 218,109) | |
| Add: Interest expense | 44,100) | 54,800) | 61,500) | 58,151) | 58,502) | |
| Earnings before interest and tax (EBIT) | 4,423,900) | 4,287,200) | 2,791,900) | 3,174,949) | 1,453,421) | |
| Add: Operating lease cost | 47,800) | 35,300) | 33,900) | 23,128) | 11,972) | |
| Earnings before fixed charges and tax | 4,471,700) | 4,322,500) | 2,825,800) | 3,198,077) | 1,465,393) | |
| Interest expense | 44,100) | 54,800) | 61,500) | 58,151) | 58,502) | |
| Operating lease cost | 47,800) | 35,300) | 33,900) | 23,128) | 11,972) | |
| Fixed charges | 91,900) | 90,100) | 95,400) | 81,279) | 70,474) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 48.66 | 47.97 | 29.62 | 39.35 | 20.79 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| AbbVie Inc. | 3.59 | 6.54 | 5.90 | 2.28 | 5.42 | |
| Amgen Inc. | 3.55 | 5.52 | 5.67 | 6.48 | 7.12 | |
| Bristol-Myers Squibb Co. | 6.69 | 6.30 | 6.01 | -3.08 | 7.10 | |
| Eli Lilly & Co. | 10.98 | 15.17 | 13.33 | 15.06 | 10.18 | |
| Gilead Sciences Inc. | 7.18 | 6.30 | 8.15 | 2.45 | 5.46 | |
| Johnson & Johnson | 16.50 | 38.72 | 48.16 | 33.93 | 28.72 | |
| Merck & Co. Inc. | 2.27 | 13.69 | 13.08 | 8.47 | 10.31 | |
| Pfizer Inc. | 1.34 | 18.79 | 14.22 | 4.98 | 9.88 | |
| Regeneron Pharmaceuticals Inc. | 46.55 | 68.67 | 138.96 | 57.70 | 60.98 | |
| Thermo Fisher Scientific Inc. | 4.61 | 8.12 | 12.19 | 10.30 | 5.61 | |
| Fixed Charge Coverage, Sector | ||||||
| Pharmaceuticals, Biotechnology & Life Sciences | 5.00 | 11.49 | 11.39 | 5.83 | 9.02 | |
| Fixed Charge Coverage, Industry | ||||||
| Health Care | 5.41 | 8.84 | 8.58 | 5.70 | 6.61 | |
Based on: 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).
1 2023 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 4,471,700 ÷ 91,900 = 48.66
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Vertex Pharmaceuticals Inc. fixed charge coverage ratio improved from 2021 to 2022 and from 2022 to 2023. |