Analysis of Solvency Ratios
Quarterly Data
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 (quarterly data)
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
The solvency position, as indicated by the provided ratios, demonstrates a generally stable financial structure for the majority of the observed period, with notable shifts occurring in the latter quarters. Initially, debt levels relative to equity, capital, and assets were consistently low. However, a discernible increase in these ratios begins in the March 31, 2024 period and continues through September 30, 2025, suggesting increased reliance on debt financing.
- Debt to Equity
- The debt to equity ratio remained consistently at 0.03 from March 31, 2022, through December 31, 2022. A slight decrease to 0.02 was observed in the first half of 2023, before increasing to 0.04 by June 30, 2024, and peaking at 0.11 by September 30, 2025, before decreasing slightly to 0.10 by December 31, 2025. This indicates a growing proportion of debt relative to shareholder equity.
- Debt to Capital
- Mirroring the trend in debt to equity, the debt to capital ratio remained stable at 0.03 from March 31, 2022, to December 31, 2022. It then decreased to 0.02 for the first half of 2023. Similar to the debt to equity ratio, it increased to 0.09 by June 30, 2024, peaking at 0.10 by September 30, 2025, and decreasing to 0.09 by December 31, 2025. This suggests a similar pattern of increasing leverage relative to total capital.
- Debt to Assets
- The debt to assets ratio exhibited a similar pattern, remaining around 0.02 to 0.03 from March 31, 2022, through March 31, 2023. It then increased to 0.07 by June 30, 2024, and remained at 0.07 through December 31, 2024, before decreasing slightly to 0.06 by June 30, 2025, and increasing to 0.07 by December 31, 2025. This indicates a growing proportion of debt financing relative to total assets.
- Financial Leverage
- Financial leverage, as measured by this ratio, remained relatively stable between 1.28 and 1.32 from September 30, 2022, through September 30, 2023. A notable increase to 1.36 was observed by March 31, 2024, peaking at 1.44 by September 30, 2025, before decreasing to 1.37 by December 31, 2025. This suggests an increasing degree of financial leverage employed by the entity.
- Interest Coverage
- The interest coverage ratio demonstrated a strong upward trend from March 31, 2022, to September 30, 2023, increasing from 48.17 to 96.54. However, a dramatic decline occurred in the following period, falling to 6.14 by June 30, 2024. While the ratio recovered somewhat to 9.12 by December 31, 2024, it experienced a significant negative value of -11.94 by March 31, 2025, before rebounding sharply to 350.11 by December 31, 2025. This volatility suggests a significant change in earnings relative to interest expense, with a period of potential concern around March 31, 2025, followed by a substantial improvement.
In summary, the entity maintained a conservative debt position for much of the analyzed period. However, the latter quarters reveal a trend of increasing debt utilization, coupled with a period of significant volatility in the interest coverage ratio. The negative interest coverage ratio in March 2025 warrants further investigation, despite the subsequent recovery.
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Debt Ratios
Coverage Ratios
Debt to Equity
Vertex Pharmaceuticals Inc., debt to equity calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||
| Total debt | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||
| Shareholders’ equity | 18,665,800) | 17,318,800) | 17,175,400) | 16,496,300) | 16,409,600) | 15,630,900) | 14,774,700) | 18,546,600) | 17,580,400) | 16,512,800) | 15,470,200) | 14,432,300) | 13,912,700) | 13,029,600) | 11,933,500) | 10,907,000) | |||||
| Solvency Ratio | |||||||||||||||||||||
| Debt to equity1 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||
| Benchmarks | |||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||
| AbbVie Inc. | — | — | — | 49.22 | 20.19 | 11.78 | 10.42 | 9.24 | 5.73 | 5.02 | 4.74 | 4.68 | 3.67 | 4.35 | 4.98 | 4.51 | |||||
| Amgen Inc. | 6.31 | 5.67 | 7.57 | 9.24 | 10.23 | 8.02 | 10.57 | 12.75 | 10.37 | 7.90 | 9.08 | 11.52 | 10.64 | 10.60 | 15.10 | 40.23 | |||||
| Bristol-Myers Squibb Co. | 2.44 | 2.64 | 2.82 | 2.86 | 3.04 | 2.90 | 3.08 | 3.38 | 1.35 | 1.30 | 1.18 | 1.19 | 1.27 | 1.20 | 1.29 | 1.42 | |||||
| Danaher Corp. | 0.35 | 0.33 | 0.33 | 0.32 | 0.32 | 0.34 | 0.34 | 0.34 | 0.34 | 0.42 | 0.38 | 0.39 | 0.39 | 0.41 | 0.43 | 0.47 | |||||
| Eli Lilly & Co. | 1.60 | 1.79 | 2.18 | 2.44 | 2.37 | 2.19 | 2.13 | 2.05 | 2.34 | 1.80 | 1.70 | 1.69 | 1.52 | 1.58 | 1.97 | 1.77 | |||||
| Gilead Sciences Inc. | 1.10 | 1.16 | 1.27 | 1.30 | 1.38 | 1.26 | 1.28 | 1.44 | 1.09 | 1.12 | 1.19 | 1.20 | 1.19 | 1.20 | 1.30 | 1.32 | |||||
| Johnson & Johnson | 0.59 | 0.58 | 0.65 | 0.67 | 0.51 | 0.51 | 0.58 | 0.48 | 0.43 | 0.42 | 0.61 | 0.75 | 0.52 | 0.43 | 0.43 | 0.44 | |||||
| Merck & Co. Inc. | 0.94 | 0.80 | 0.72 | 0.72 | 0.80 | 0.86 | 0.87 | 0.85 | 0.93 | 0.85 | 0.95 | 0.66 | 0.67 | 0.68 | 0.73 | 0.78 | |||||
| Pfizer Inc. | 0.75 | 0.66 | 0.70 | 0.69 | 0.73 | 0.73 | 0.79 | 0.75 | 0.81 | 0.66 | 0.66 | 0.36 | 0.37 | 0.40 | 0.46 | 0.44 | |||||
| Regeneron Pharmaceuticals Inc. | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 | 0.10 | 0.10 | 0.10 | 0.11 | 0.11 | 0.11 | 0.12 | 0.13 | 0.13 | 0.14 | |||||
| Thermo Fisher Scientific Inc. | 0.74 | 0.70 | 0.70 | 0.69 | 0.63 | 0.72 | 0.75 | 0.78 | 0.75 | 0.78 | 0.78 | 0.83 | 0.78 | 0.67 | 0.72 | 0.81 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= 0 ÷ 18,665,800 = 0.00
2 Click competitor name to see calculations.
An examination of the provided financial information reveals trends in the debt to equity ratio over a multi-year period. Shareholders’ equity consistently increased from March 31, 2022, through December 31, 2023, before experiencing a decrease in the subsequent periods. The debt to equity ratio exhibits a corresponding pattern, initially decreasing as equity grew, then increasing following the equity decline.
- Debt to Equity Ratio - Overall Trend
- The debt to equity ratio remained relatively stable between March 31, 2022, and December 31, 2023, fluctuating within a narrow range. A noticeable increase in the ratio is observed from March 31, 2024, onwards, coinciding with a reduction in shareholders’ equity. This suggests a growing reliance on debt financing relative to equity.
- Shareholders’ Equity Impact
- Shareholders’ equity demonstrated consistent growth from $10,907,000 thousand in March 2022 to $17,580,400 thousand in December 2023. However, a significant decrease to $14,774,700 thousand occurred by March 2024, and continued to fluctuate between $14,774,700 thousand and $18,665,800 thousand through December 2025. This volatility in equity directly influences the debt to equity ratio.
- Ratio Fluctuations - Specific Periods
- The most substantial increase in the debt to equity ratio occurred between December 31, 2023, and March 31, 2024. This period corresponds with the largest single decrease in shareholders’ equity. Subsequent periods show some recovery in equity, but the ratio remains elevated compared to the levels observed prior to March 2024. The ratio appears to be stabilizing in the most recent periods, between September 30, 2025, and December 31, 2025.
In summary, the observed trends indicate a period of increasing financial leverage, driven primarily by changes in shareholders’ equity. While the company maintained a relatively conservative debt to equity position through much of the analyzed period, the recent fluctuations warrant continued monitoring to assess potential risks associated with increased debt reliance.
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Debt to Equity (including Operating Lease Liability)
Vertex Pharmaceuticals Inc., debt to equity (including operating lease liability) calculation (quarterly data)
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity
= 1,846,500 ÷ 18,665,800 = 0.10
The debt to equity ratio, including operating lease liability, for the analyzed period demonstrates a period of stability followed by a significant increase. Initially, the ratio remained consistently low, then experienced a substantial rise before stabilizing again.
- Initial Stability (Mar 31, 2022 – Dec 31, 2022)
- From March 31, 2022, through December 31, 2022, the debt to equity ratio remained stable at 0.03. This indicates a consistently low level of debt relative to shareholders’ equity during this period. Total debt fluctuated modestly within the range of US$365,000 to US$382,300, while shareholders’ equity steadily increased from US$10,907,000 to US$13,912,700.
- Continued Low Leverage (Mar 31, 2023 – Dec 31, 2023)
- The trend of low leverage continued through December 31, 2023. The debt to equity ratio decreased slightly, reaching 0.02 by September 30, 2023, and then increased to 0.02 by December 31, 2023. Shareholders’ equity continued its upward trajectory, reaching US$17,580,400, while total debt decreased from US$371,600 to US$348,600.
- Significant Increase in Leverage (Mar 31, 2024 – Jun 30, 2025)
- A notable shift occurred beginning with the period ending March 31, 2024. The debt to equity ratio increased substantially to 0.04, and then to 0.10 by September 30, 2024. This increase was driven by a significant rise in total debt, reaching US$1,588,900, while shareholders’ equity experienced a decrease to US$15,630,900. The ratio remained elevated at 0.09 through December 31, 2024, and 0.09 through March 31, 2025. The ratio then increased to 0.11 by September 30, 2025, and stabilized at 0.10 by December 31, 2025, with total debt at US$1,846,500 and shareholders’ equity at US$18,665,800.
The substantial increase in the debt to equity ratio during the latter portion of the analyzed period warrants further investigation to understand the reasons behind the increased debt financing and its potential implications for the company’s financial risk profile.
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Debt to Capital
Vertex Pharmaceuticals Inc., debt to capital calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||
| Total debt | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||
| Shareholders’ equity | 18,665,800) | 17,318,800) | 17,175,400) | 16,496,300) | 16,409,600) | 15,630,900) | 14,774,700) | 18,546,600) | 17,580,400) | 16,512,800) | 15,470,200) | 14,432,300) | 13,912,700) | 13,029,600) | 11,933,500) | 10,907,000) | |||||
| Total capital | 18,665,800) | 17,318,800) | 17,175,400) | 16,496,300) | 16,409,600) | 15,630,900) | 14,774,700) | 18,546,600) | 17,580,400) | 16,512,800) | 15,470,200) | 14,432,300) | 13,912,700) | 13,029,600) | 11,933,500) | 10,907,000) | |||||
| Solvency Ratio | |||||||||||||||||||||
| Debt to capital1 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||
| Benchmarks | |||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||
| AbbVie Inc. | 1.05 | 1.04 | 1.00 | 0.98 | 0.95 | 0.92 | 0.91 | 0.90 | 0.85 | 0.83 | 0.83 | 0.82 | 0.79 | 0.81 | 0.83 | 0.82 | |||||
| Amgen Inc. | 0.86 | 0.85 | 0.88 | 0.90 | 0.91 | 0.89 | 0.91 | 0.93 | 0.91 | 0.89 | 0.90 | 0.92 | 0.91 | 0.91 | 0.94 | 0.98 | |||||
| Bristol-Myers Squibb Co. | 0.71 | 0.73 | 0.74 | 0.74 | 0.75 | 0.74 | 0.75 | 0.77 | 0.57 | 0.56 | 0.54 | 0.54 | 0.56 | 0.54 | 0.56 | 0.59 | |||||
| Danaher Corp. | 0.26 | 0.25 | 0.25 | 0.24 | 0.24 | 0.25 | 0.25 | 0.25 | 0.26 | 0.30 | 0.28 | 0.28 | 0.28 | 0.29 | 0.30 | 0.32 | |||||
| Eli Lilly & Co. | 0.62 | 0.64 | 0.69 | 0.71 | 0.70 | 0.69 | 0.68 | 0.67 | 0.70 | 0.64 | 0.63 | 0.63 | 0.60 | 0.61 | 0.66 | 0.64 | |||||
| Gilead Sciences Inc. | 0.52 | 0.54 | 0.56 | 0.57 | 0.58 | 0.56 | 0.56 | 0.59 | 0.52 | 0.53 | 0.54 | 0.55 | 0.54 | 0.54 | 0.56 | 0.57 | |||||
| Johnson & Johnson | 0.37 | 0.37 | 0.39 | 0.40 | 0.34 | 0.34 | 0.37 | 0.32 | 0.30 | 0.30 | 0.38 | 0.43 | 0.34 | 0.30 | 0.30 | 0.31 | |||||
| Merck & Co. Inc. | 0.48 | 0.44 | 0.42 | 0.42 | 0.44 | 0.46 | 0.46 | 0.46 | 0.48 | 0.46 | 0.49 | 0.40 | 0.40 | 0.41 | 0.42 | 0.44 | |||||
| Pfizer Inc. | 0.43 | 0.40 | 0.41 | 0.41 | 0.42 | 0.42 | 0.44 | 0.43 | 0.45 | 0.40 | 0.40 | 0.26 | 0.27 | 0.28 | 0.32 | 0.31 | |||||
| Regeneron Pharmaceuticals Inc. | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | 0.09 | 0.09 | 0.09 | 0.10 | 0.10 | 0.10 | 0.11 | 0.11 | 0.12 | 0.12 | |||||
| Thermo Fisher Scientific Inc. | 0.42 | 0.41 | 0.41 | 0.41 | 0.39 | 0.42 | 0.43 | 0.44 | 0.43 | 0.44 | 0.44 | 0.45 | 0.44 | 0.40 | 0.42 | 0.45 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= 0 ÷ 18,665,800 = 0.00
2 Click competitor name to see calculations.
The Debt to Capital ratio for the analyzed period demonstrates a generally increasing trend, with some fluctuation. Initially, the ratio is not available for the first three quarters of 2022. However, from December 31, 2022, through September 30, 2023, a consistent upward trajectory is observed. This trend reverses in the subsequent quarters, with a notable decrease in the ratio by March 31, 2024. The ratio then stabilizes and experiences a slight increase through December 31, 2025.
- Overall Trend
- The Debt to Capital ratio generally increased from the end of 2022 through the third quarter of 2023, indicating a growing reliance on debt financing relative to capital. This was followed by a decrease, suggesting a shift towards equity or a reduction in debt. The ratio then remained relatively stable, with a slight increase at the end of the analyzed period.
- Significant Changes
- A substantial decrease in the Debt to Capital ratio is evident between June 30, 2024, and March 31, 2024. This suggests a significant change in the company’s capital structure during that period, potentially through equity issuance, debt repayment, or a revaluation of assets. The ratio increased from September 30, 2025, to December 31, 2025, indicating a potential increase in debt or a decrease in capital.
- Recent Performance
- From March 31, 2024, to December 31, 2025, the ratio remained relatively stable, fluctuating between approximately 0.92 and 0.99. This suggests a period of consistent capital structure management. The final value of approximately 0.99 indicates that debt comprises approximately 99% of the company’s capital.
The fluctuations in the Debt to Capital ratio warrant further investigation to understand the underlying drivers of these changes and their implications for the company’s financial risk and flexibility.
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Debt to Capital (including Operating Lease Liability)
Vertex Pharmaceuticals Inc., debt to capital (including operating lease liability) calculation (quarterly data)
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 1,846,500 ÷ 20,512,300 = 0.09
The debt to capital ratio, including operating lease liabilities, demonstrates a period of stability followed by a significant increase. Throughout the first three quarters of 2022 and all of 2023, the ratio remained consistently low, fluctuating between 0.02 and 0.03. However, beginning in the second quarter of 2024, a notable upward trend emerges, culminating in a ratio of 0.10 by the third quarter of 2025.
- Total Debt Trend
- Total debt remained relatively stable between approximately US$350,000 and US$380,000 thousand from March 2022 through December 2023. A substantial increase is observed starting in June 2024, reaching US$1,588,900 thousand, and remaining elevated through the end of the observed period, fluctuating between US$1,527,400 and US$1,846,500 thousand.
- Total Capital Trend
- Total capital generally increased from US$11,284,000 thousand in March 2022 to US$17,929,000 thousand by December 2023. A decrease is noted in March 2024 to US$15,361,500 thousand, followed by a recovery and continued growth, reaching US$20,512,300 thousand by December 2025. The increase in capital, however, did not offset the larger increase in debt.
- Debt to Capital Ratio – Key Observations
- The consistent low ratio prior to mid-2024 indicates a conservative capital structure with a relatively small proportion of debt financing. The sharp increase in the ratio from June 2024 onwards suggests a significant reliance on debt to finance operations or investments. While total capital also increased, the growth in debt outpaced the growth in capital, driving the ratio higher. The ratio nearly quadrupled from 0.04 in March 2024 to 0.10 in September 2025.
The observed changes warrant further investigation to understand the reasons behind the increased debt levels and the implications for the company’s financial risk profile. The substantial increase in debt relative to capital suggests a potential shift in the company’s financing strategy.
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Debt to Assets
Vertex Pharmaceuticals Inc., debt to assets calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||
| Total debt | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | |||||
| Total assets | 25,643,000) | 24,862,300) | 24,036,700) | 22,880,500) | 22,533,200) | 22,240,200) | 20,132,100) | 23,917,400) | 22,730,200) | 21,726,200) | 20,349,200) | 18,974,200) | 18,150,900) | 16,706,400) | 15,582,200) | 14,256,100) | |||||
| Solvency Ratio | |||||||||||||||||||||
| Debt to assets1 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||
| Benchmarks | |||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||
| AbbVie Inc. | 0.50 | 0.51 | 0.51 | 0.51 | 0.50 | 0.50 | 0.50 | 0.50 | 0.44 | 0.45 | 0.45 | 0.46 | 0.46 | 0.49 | 0.51 | 0.51 | |||||
| Amgen Inc. | 0.60 | 0.61 | 0.64 | 0.64 | 0.65 | 0.66 | 0.69 | 0.69 | 0.67 | 0.67 | 0.68 | 0.69 | 0.60 | 0.61 | 0.62 | 0.62 | |||||
| Bristol-Myers Squibb Co. | 0.50 | 0.51 | 0.52 | 0.54 | 0.54 | 0.53 | 0.55 | 0.56 | 0.42 | 0.41 | 0.40 | 0.40 | 0.41 | 0.40 | 0.42 | 0.44 | |||||
| Danaher Corp. | 0.22 | 0.21 | 0.21 | 0.21 | 0.21 | 0.22 | 0.22 | 0.22 | 0.22 | 0.25 | 0.23 | 0.23 | 0.23 | 0.24 | 0.25 | 0.26 | |||||
| Eli Lilly & Co. | 0.38 | 0.37 | 0.40 | 0.43 | 0.43 | 0.41 | 0.40 | 0.41 | 0.39 | 0.35 | 0.34 | 0.36 | 0.33 | 0.33 | 0.36 | 0.35 | |||||
| Gilead Sciences Inc. | 0.42 | 0.43 | 0.45 | 0.44 | 0.45 | 0.43 | 0.44 | 0.45 | 0.40 | 0.40 | 0.40 | 0.41 | 0.40 | 0.40 | 0.42 | 0.42 | |||||
| Johnson & Johnson | 0.24 | 0.24 | 0.26 | 0.27 | 0.20 | 0.20 | 0.23 | 0.20 | 0.18 | 0.18 | 0.24 | 0.27 | 0.21 | 0.18 | 0.18 | 0.19 | |||||
| Merck & Co. Inc. | 0.36 | 0.32 | 0.30 | 0.30 | 0.32 | 0.32 | 0.34 | 0.32 | 0.33 | 0.33 | 0.35 | 0.29 | 0.28 | 0.28 | 0.30 | 0.30 | |||||
| Pfizer Inc. | 0.31 | 0.30 | 0.30 | 0.30 | 0.30 | 0.31 | 0.32 | 0.31 | 0.32 | 0.30 | 0.30 | 0.18 | 0.18 | 0.19 | 0.21 | 0.20 | |||||
| Regeneron Pharmaceuticals Inc. | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.07 | 0.08 | 0.08 | 0.08 | 0.09 | 0.09 | 0.09 | 0.10 | 0.10 | 0.10 | |||||
| Thermo Fisher Scientific Inc. | 0.36 | 0.35 | 0.35 | 0.35 | 0.32 | 0.35 | 0.36 | 0.37 | 0.35 | 0.36 | 0.36 | 0.37 | 0.35 | 0.32 | 0.33 | 0.36 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= 0 ÷ 25,643,000 = 0.00
2 Click competitor name to see calculations.
An examination of the debt to assets ratio reveals a generally increasing trend over the observed period, followed by a recent stabilization and slight decrease. Initially, the ratio is not available, but as the period progresses, a pattern emerges indicating a growing reliance on debt financing relative to the company’s asset base.
- Overall Trend
- From March 31, 2022, to December 31, 2022, the debt to assets ratio demonstrates consistent growth, rising from a base of 14,256,100 in total assets. This upward trajectory continues through September 30, 2023, reaching a peak. Subsequently, the ratio experiences a slight decline, stabilizing around the 22-25% range through December 31, 2025.
- Specific Observations
- The most significant increase in the ratio occurs between June 30, 2022, and December 31, 2022. A similar, though less pronounced, increase is observed between March 31, 2023, and September 30, 2023. The period from September 30, 2024, to December 31, 2025, shows a minimal fluctuation, suggesting a potential stabilization of the company’s debt structure.
- Recent Developments
- The ratio decreased from 22,533,200 to 22,880,500 between December 31, 2024, and March 31, 2025. This is followed by a slight increase to 24,036,700 by June 30, 2025, and a further increase to 24,862,300 by September 30, 2025, before concluding at 25,643,000 by December 31, 2025. These recent fluctuations, while present, are less dramatic than those observed earlier in the period.
In summary, the company initially increased its debt relative to its assets, but the trend appears to have moderated in the most recent quarters, indicating a potential shift towards a more balanced financial structure. Continued monitoring is recommended to assess the sustainability of this stabilization.
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Debt to Assets (including Operating Lease Liability)
Vertex Pharmaceuticals Inc., debt to assets (including operating lease liability) calculation (quarterly data)
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 1,846,500 ÷ 25,643,000 = 0.07
The debt to assets ratio, including operating lease liabilities, demonstrates a period of stability followed by a significant increase. Throughout the first three quarters of 2022 and all of 2023, the ratio remained consistently low, fluctuating between 0.02 and 0.03. However, beginning in the second quarter of 2024, a marked upward trend is observed, culminating in a ratio of 0.07 by the third quarter and remaining at that level through the end of the observed period.
- Total Debt Trend
- Total debt exhibited a gradual decline from $377,000 thousand in March 2022 to $348,600 thousand in December 2022. This downward trend continued into the first half of 2023, reaching a low of $363,500 thousand in June 2023. A subsequent increase is then noted, with debt rising sharply to $586,800 thousand in June 2024, and then stabilizing around $1,530,000 - $1,850,000 thousand for the remainder of the period.
- Total Assets Trend
- Total assets generally increased throughout 2022 and 2023, moving from $14,256,100 thousand in March 2022 to $22,730,200 thousand in December 2023. A decrease is observed in March 2024 to $20,132,100 thousand, followed by a recovery and further growth to $25,643,000 thousand by December 2025. The asset base demonstrates more stability than the debt levels.
- Debt to Assets Ratio – Key Observations
- The consistent low ratio prior to mid-2024 indicates a conservative capital structure with a relatively small proportion of assets financed by debt. The substantial increase in the ratio starting in June 2024 suggests a significant increase in leverage, potentially due to new debt financing or a decrease in asset value. The ratio’s stabilization at 0.07 indicates that the increased debt levels have been maintained relative to the asset base.
The observed changes warrant further investigation to understand the reasons behind the substantial increase in debt, its impact on financial flexibility, and the company’s ability to service its obligations. The increase in the ratio, while not necessarily alarming in isolation, represents a notable shift in the company’s financial profile.
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Financial Leverage
Vertex Pharmaceuticals Inc., financial leverage calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||
| Total assets | 25,643,000) | 24,862,300) | 24,036,700) | 22,880,500) | 22,533,200) | 22,240,200) | 20,132,100) | 23,917,400) | 22,730,200) | 21,726,200) | 20,349,200) | 18,974,200) | 18,150,900) | 16,706,400) | 15,582,200) | 14,256,100) | |||||
| Shareholders’ equity | 18,665,800) | 17,318,800) | 17,175,400) | 16,496,300) | 16,409,600) | 15,630,900) | 14,774,700) | 18,546,600) | 17,580,400) | 16,512,800) | 15,470,200) | 14,432,300) | 13,912,700) | 13,029,600) | 11,933,500) | 10,907,000) | |||||
| Solvency Ratio | |||||||||||||||||||||
| Financial leverage1 | 1.37 | 1.44 | 1.40 | 1.39 | 1.37 | 1.42 | 1.36 | 1.29 | 1.29 | 1.32 | 1.32 | 1.31 | 1.30 | 1.28 | 1.31 | 1.31 | |||||
| Benchmarks | |||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||
| AbbVie Inc. | — | — | — | 95.89 | 40.65 | 23.78 | 20.94 | 18.59 | 13.00 | 11.26 | 10.52 | 10.14 | 8.04 | 8.84 | 9.77 | 8.80 | |||||
| Amgen Inc. | 10.46 | 9.37 | 11.83 | 14.40 | 15.63 | 12.07 | 15.34 | 18.51 | 15.59 | 11.83 | 13.31 | 16.59 | 17.79 | 17.44 | 24.51 | 64.62 | |||||
| Bristol-Myers Squibb Co. | 4.87 | 5.22 | 5.43 | 5.32 | 5.67 | 5.46 | 5.56 | 6.01 | 3.23 | 3.15 | 2.92 | 2.96 | 3.12 | 3.01 | 3.08 | 3.26 | |||||
| Danaher Corp. | 1.59 | 1.56 | 1.56 | 1.56 | 1.57 | 1.57 | 1.57 | 1.56 | 1.58 | 1.67 | 1.64 | 1.65 | 1.68 | 1.72 | 1.76 | 1.80 | |||||
| Eli Lilly & Co. | 4.24 | 4.83 | 5.52 | 5.67 | 5.55 | 5.31 | 5.30 | 4.99 | 5.94 | 5.16 | 4.95 | 4.75 | 4.65 | 4.71 | 5.51 | 5.03 | |||||
| Gilead Sciences Inc. | 2.60 | 2.72 | 2.83 | 2.95 | 3.05 | 2.95 | 2.93 | 3.21 | 2.72 | 2.80 | 2.95 | 2.95 | 2.97 | 2.97 | 3.11 | 3.17 | |||||
| Johnson & Johnson | 2.44 | 2.43 | 2.46 | 2.48 | 2.52 | 2.54 | 2.53 | 2.46 | 2.44 | 2.33 | 2.55 | 2.77 | 2.44 | 2.35 | 2.33 | 2.39 | |||||
| Merck & Co. Inc. | 2.60 | 2.50 | 2.40 | 2.38 | 2.53 | 2.64 | 2.58 | 2.62 | 2.84 | 2.59 | 2.70 | 2.30 | 2.37 | 2.41 | 2.48 | 2.61 | |||||
| Pfizer Inc. | 2.41 | 2.25 | 2.32 | 2.30 | 2.42 | 2.38 | 2.47 | 2.40 | 2.54 | 2.22 | 2.22 | 1.94 | 2.06 | 2.10 | 2.24 | 2.23 | |||||
| Regeneron Pharmaceuticals Inc. | 1.30 | 1.30 | 1.28 | 1.28 | 1.29 | 1.28 | 1.28 | 1.27 | 1.27 | 1.29 | 1.28 | 1.28 | 1.29 | 1.29 | 1.32 | 1.32 | |||||
| Thermo Fisher Scientific Inc. | 2.07 | 2.02 | 2.00 | 2.01 | 1.96 | 2.05 | 2.08 | 2.13 | 2.11 | 2.14 | 2.15 | 2.24 | 2.21 | 2.08 | 2.14 | 2.26 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= 25,643,000 ÷ 18,665,800 = 1.37
2 Click competitor name to see calculations.
The financial leverage ratio for the analyzed period demonstrates a generally stable pattern with some fluctuation. Initially, the ratio remained consistent at 1.31 for the first three quarters of 2022, before experiencing a slight increase to 1.30 by the end of the year. This trend continued into the first half of 2023, with a further increase to 1.32. A subsequent decrease to 1.29 was observed in the third quarter of 2023, followed by a slight recovery to 1.37 by the end of 2024. The most recent periods show a slight increase to 1.44 in September 2025, before decreasing to 1.37 in December 2025.
- Overall Trend
- The financial leverage ratio has remained relatively contained between 1.28 and 1.44 throughout the analyzed period. While fluctuations exist, there is no indication of a dramatic shift in the company’s reliance on financial leverage. The ratio generally increased from 2022 to 2024, then showed a slight decrease in the final period.
- Short-Term Fluctuations
- A noticeable increase in the ratio occurred between March 2023 (1.31) and June 2023 (1.32). This suggests a slight increase in debt relative to equity during that period. A similar increase is observed between March 2024 (1.29) and September 2024 (1.42). The decrease in the ratio in December 2024 and December 2025 may indicate a reduction in debt or an increase in equity.
- Relationship to Total Assets and Equity
- Total assets and shareholders’ equity both increased consistently throughout most of the period, which contributes to the relative stability of the financial leverage ratio. The larger decrease in total assets in June 2024, coupled with a smaller decrease in shareholders’ equity, resulted in the highest ratio observed (1.42). The continued growth in both assets and equity in the final periods suggests a strengthening financial position, despite the fluctuations in the leverage ratio.
In conclusion, the company maintains a moderate level of financial leverage. The observed fluctuations appear to be manageable and do not indicate a significant change in the company’s financial risk profile. Continued monitoring of this ratio, alongside other solvency metrics, is recommended.
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Interest Coverage
Vertex Pharmaceuticals Inc., interest coverage calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||
| Net income (loss) | 1,191,100) | 1,082,900) | 1,032,900) | 646,300) | 913,000) | 1,045,400) | (3,593,600) | 1,099,600) | 968,800) | 1,035,300) | 915,700) | 699,800) | 818,900) | 930,500) | 810,500) | 762,100) | |||||
| Add: Income tax expense | 139,900) | 215,900) | 250,100) | 84,100) | 223,500) | 178,700) | 202,400) | 179,500) | 178,800) | 143,900) | 245,800) | 191,700) | 257,900) | 245,900) | 213,900) | 192,700) | |||||
| Add: Interest expense | 3,300) | 3,300) | 3,700) | 3,000) | 2,800) | 7,500) | 9,900) | 10,400) | 10,600) | 10,900) | 11,200) | 11,400) | 11,600) | 13,700) | 14,600) | 14,900) | |||||
| Earnings before interest and tax (EBIT) | 1,334,300) | 1,302,100) | 1,286,700) | 733,400) | 1,139,300) | 1,231,600) | (3,381,300) | 1,289,500) | 1,158,200) | 1,190,100) | 1,172,700) | 902,900) | 1,088,400) | 1,190,100) | 1,039,000) | 969,700) | |||||
| Solvency Ratio | |||||||||||||||||||||
| Interest coverage1 | 350.11 | 348.55 | 258.29 | -11.94 | 9.12 | 7.76 | 6.14 | 111.61 | 100.32 | 96.54 | 90.90 | 82.27 | 78.23 | 70.08 | 66.72 | 48.17 | |||||
| Benchmarks | |||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||
| Amgen Inc. | 4.26 | 3.89 | 3.53 | 3.18 | 2.46 | 2.45 | 2.10 | 2.38 | 3.73 | 4.54 | 5.43 | 6.51 | 6.22 | 6.83 | 6.97 | 6.40 | |||||
| Danaher Corp. | 16.97 | 16.41 | 15.01 | 16.80 | 17.71 | 16.11 | 17.61 | 17.81 | 18.64 | 23.66 | 29.65 | 35.60 | 40.30 | 41.32 | 35.26 | 33.54 | |||||
| Gilead Sciences Inc. | 10.57 | 10.71 | 8.20 | 7.94 | 1.71 | 1.18 | 2.58 | 2.11 | 8.27 | 8.88 | 9.03 | 8.84 | 7.22 | 5.80 | 6.73 | 6.97 | |||||
| Johnson & Johnson | 34.55 | 36.24 | 33.48 | 34.09 | 23.10 | 23.92 | 26.40 | 29.06 | 20.51 | 19.09 | 23.89 | 31.49 | 79.71 | 141.63 | 160.27 | 164.15 | |||||
| Regeneron Pharmaceuticals Inc. | 120.42 | 123.21 | 134.19 | 105.27 | 87.59 | 79.88 | 69.47 | 57.85 | 58.52 | 61.70 | 69.61 | 73.97 | 82.80 | 108.62 | 116.35 | 163.24 | |||||
| Thermo Fisher Scientific Inc. | 6.12 | 6.19 | 6.09 | 6.25 | 6.03 | 5.62 | 5.62 | 5.53 | 5.54 | 5.98 | 6.64 | 8.28 | 11.56 | 13.59 | 15.70 | 16.73 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q4 2025 Calculation
Interest coverage
= (EBITQ4 2025
+ EBITQ3 2025
+ EBITQ2 2025
+ EBITQ1 2025)
÷ (Interest expenseQ4 2025
+ Interest expenseQ3 2025
+ Interest expenseQ2 2025
+ Interest expenseQ1 2025)
= (1,334,300 + 1,302,100 + 1,286,700 + 733,400)
÷ (3,300 + 3,300 + 3,700 + 3,000)
= 350.11
2 Click competitor name to see calculations.
The interest coverage ratio exhibits a generally positive trend over the observed period, with notable fluctuations. Initially, the ratio demonstrates a strong and consistent increase from March 31, 2022, to December 31, 2023, before experiencing a significant decline and subsequent recovery.
- Overall Trend
- From March 31, 2022, through December 31, 2023, the interest coverage ratio increased substantially, moving from 48.17 to 100.32. This indicates a strengthening ability to meet interest obligations with earnings. Following this period, the ratio experienced a dramatic decrease in the first quarter of 2024, before recovering and continuing to improve through December 31, 2025.
- Period of Significant Increase (Q1 2022 - Q4 2023)
- The period between March 31, 2022, and December 31, 2023, saw consistent growth in the interest coverage ratio. This coincided with increasing earnings before interest and tax (EBIT) and relatively stable interest expense. The ratio more than doubled during this timeframe, suggesting improved financial health and reduced risk associated with debt servicing.
- Notable Decline (Q1 2024)
- A substantial decrease in the interest coverage ratio is observed for the quarter ending March 31, 2024, falling to 6.14. This decline is attributable to a significant negative value reported for Earnings Before Interest and Tax (EBIT) during that period, while interest expense remained relatively consistent. This suggests a temporary impairment of earnings relative to interest obligations.
- Recovery and Continued Growth (Q2 2024 - Q4 2025)
- Following the decline in the first quarter of 2024, the interest coverage ratio demonstrates a strong recovery. By June 30, 2024, the ratio had risen to 7.76, and continued to increase, reaching 350.11 by December 31, 2025. This recovery is driven by a return to positive and increasing EBIT, coupled with stable or decreasing interest expense. The ratio’s final value indicates a very strong capacity to cover interest payments.
- Interest Expense Trend
- Interest expense remained relatively stable throughout the observed period, decreasing gradually from US$14,900 in thousands in March 2022 to US$3,300 in thousands by December 2025. This consistent interest expense contributes to the amplified effect of EBIT fluctuations on the interest coverage ratio.
In summary, while the company experienced a temporary setback in the first quarter of 2024, the overall trend in the interest coverage ratio is positive, indicating a strong and improving ability to meet its interest obligations. The significant increase in the ratio towards the end of the period suggests a robust financial position.
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