Vertex Pharmaceuticals Inc. (NASDAQ:VRTX)

Coverage Ratios

Vertex Pharmaceuticals Inc., solvency ratios (quarterly data)

	Sep 30, 2026	Jun 30, 2026	Mar 31, 2026	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
Debt Ratios
Debt to equity	0.22	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	0.00	0.00
Debt to equity (including operating lease liability)	0.31	0.10	0.10	0.10	0.11	0.09	0.09	0.09	0.10	0.04	0.02	0.02	0.02	0.02	0.03	0.03	0.03	0.03	0.03
Debt to capital	0.18	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	0.00	0.00
Debt to capital (including operating lease liability)	0.24	0.09	0.09	0.09	0.10	0.08	0.09	0.09	0.09	0.04	0.02	0.02	0.02	0.02	0.03	0.03	0.03	0.03	0.03
Debt to assets	0.14	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	0.00	0.00
Debt to assets (including operating lease liability)	0.20	0.07	0.08	0.07	0.07	0.06	0.07	0.07	0.07	0.03	0.02	0.02	0.02	0.02	0.02	0.02	0.02	0.02	0.03
Financial leverage	1.57	1.35	1.37	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
Coverage Ratios
Interest coverage	122.10	800.17	502.52	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

The solvency profile demonstrates a transition from a highly conservative, low-leverage capital structure to one with increased debt utilization. For the first several years of the analyzed period, the company maintained minimal debt levels, but a distinct upward trend in leverage emerged starting in mid-2024, culminating in a significant increase in debt ratios by the final quarter.

Debt Leverage Trends: Debt to equity, debt to capital, and debt to assets ratios remained exceptionally low and stable from March 2022 through March 2024, typically fluctuating between 0.02 and 0.04. A steady ascent began in June 2024, with the debt to equity ratio rising to 0.11 by December 2025 before spiking to 0.31 by September 2026. Parallel movements are observed in debt to assets, which increased from a baseline of 0.02 to 0.20, and debt to capital, which rose to 0.24. This indicates a strategic shift toward higher borrowing relative to the company's asset base and equity.
Financial Leverage: The financial leverage ratio remained relatively constant between 1.28 and 1.32 for the first two years of the period. Starting in 2024, a gradual increase is observed, with the ratio peaking at 1.57 in September 2026, corroborating the trend of increased total liabilities relative to equity.
Interest Coverage and Earnings Stability: Interest coverage exhibited extreme volatility. An initial period of strength saw the ratio climb from 48.17 in March 2022 to a peak of 111.61 in March 2024. This was followed by a precipitous decline to 6.14 in June 2024, eventually reaching a negative value of -11.94 by March 2025, suggesting a period where operating earnings were unable to cover interest obligations. A subsequent and aggressive recovery occurred, with the ratio surging to 800.17 by June 2026 before correcting to 122.10 in September 2026.

AI Ask an analyst for more

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?

Vertex Pharmaceuticals Inc., debt to equity calculation (quarterly data)

	Sep 30, 2026	Jun 30, 2026	Mar 31, 2026	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)
Short-term debt	999,600)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Long-term debt	3,497,000)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Total debt	4,496,600)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)

Shareholders’ equity	20,907,400)	20,247,900)	19,361,900)	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	0.22	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	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.	3.76	4.90	6.24	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.	1.83	1.93	2.22	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.	0.49	0.51	0.35	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.	1.23	1.62	1.39	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.	2.01	2.22	0.94	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	0.55	0.58	0.68	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.	1.20	1.29	1.07	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.	0.70	0.74	0.72	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.	0.08	0.09	0.09	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.	0.76	0.81	0.83	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

¹ Q3 2026 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= 4,496,600 ÷ 20,907,400 = 0.22

² Click competitor name to see calculations.

Shareholders' equity exhibited a consistent upward trajectory over the majority of the analyzed period, increasing from US$ 10.9 billion in March 2022 to US$ 20.9 billion by September 2026. This growth reflects a substantial expansion of the net asset base over the observed timeframe.

Equity Trend and Volatility: A sustained increase in equity is observed from early 2022 through the first quarter of 2024. However, a sharp contraction occurred between March 31, 2024, and June 30, 2024, where equity declined from US$ 18.5 billion to US$ 14.8 billion. Following this event, a recovery phase ensued, with equity steadily climbing for the remainder of the period to reach its peak in September 2026.
Solvency and Capital Structure: At the conclusion of the period on September 30, 2026, total debt was reported at US$ 4.5 billion. The debt-to-equity ratio of 0.22 indicates a highly conservative capital structure. This low ratio suggests that the organization relies minimally on external debt to finance its assets, maintaining a strong solvency position with significant equity cushioning.

AI Ask an analyst for more

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?

Vertex Pharmaceuticals Inc., debt to equity (including operating lease liability) calculation (quarterly data)

	Sep 30, 2026	Jun 30, 2026	Mar 31, 2026	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)
Short-term debt	999,600)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Long-term debt	3,497,000)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Total debt	4,496,600)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Long-term operating lease liabilities	1,981,800)	1,977,600)	1,986,500)	1,846,500)	1,834,800)	1,527,400)	1,537,700)	1,544,400)	1,588,900)	586,800)	359,800)	348,600)	354,400)	363,500)	371,600)	379,500)	382,300)	365,000)	377,000)
Total debt (including operating lease liability)	6,478,400)	1,977,600)	1,986,500)	1,846,500)	1,834,800)	1,527,400)	1,537,700)	1,544,400)	1,588,900)	586,800)	359,800)	348,600)	354,400)	363,500)	371,600)	379,500)	382,300)	365,000)	377,000)

Shareholders’ equity	20,907,400)	20,247,900)	19,361,900)	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 equity (including operating lease liability)¹	0.31	0.10	0.10	0.10	0.11	0.09	0.09	0.09	0.10	0.04	0.02	0.02	0.02	0.02	0.03	0.03	0.03	0.03	0.03

¹ Q3 2026 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity
= 6,478,400 ÷ 20,907,400 = 0.31

The analysis of the solvency profile reveals a transition from a highly conservative capital structure to a more leveraged position over the observed period. While the debt-to-equity ratio remains relatively low in absolute terms, there are significant inflection points in the trajectory of both total liabilities and shareholders' equity.

Debt Accumulation Patterns: From March 2022 through March 2024, total debt remained stable, fluctuating within a narrow range between 348.6 million and 382.3 million US dollars. A notable shift occurred in June 2024, where debt rose to 586.8 million US dollars, followed by a substantial increase to 1.58 billion US dollars by September 2024. Following a period of relative stabilization around 1.5 to 1.9 billion US dollars, a sharp escalation is observed in September 2026, with total debt reaching 6.48 billion US dollars.
Shareholders' Equity Dynamics: Equity demonstrated a consistent upward trajectory from 10.9 billion US dollars in March 2022 to 18.5 billion US dollars in March 2024. A significant contraction occurred in June 2024, where equity dropped to 14.7 billion US dollars, suggesting a substantial capital outflow or accounting adjustment. Subsequently, a steady recovery trend is observed, with equity climbing consistently to reach 20.9 billion US dollars by September 2026.
Debt to Equity Ratio Trends: The debt-to-equity ratio was maintained at a negligible level of 0.02 to 0.03 for the first two years of the period. The ratio began to climb in mid-2024, moving to 0.04 in June and peaking at 0.10 by September 2024. The ratio remained relatively stable between 0.09 and 0.11 through June 2026. However, the final recorded period in September 2026 shows a sharp spike to 0.31, reflecting the disproportionate increase in total debt relative to the growth in equity.

Overall, the data indicates a strategic shift in financing. The company moved from a near-zero debt posture to one characterized by significant borrowing in 2024 and a massive expansion of liabilities in late 2026. Despite these increases, the growth in shareholders' equity has partially mitigated the impact on the solvency ratio, although the most recent trend suggests a rapidly increasing reliance on debt financing.

AI Ask an analyst for more

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?

Vertex Pharmaceuticals Inc., debt to capital calculation (quarterly data)

	Sep 30, 2026	Jun 30, 2026	Mar 31, 2026	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)
Short-term debt	999,600)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Long-term debt	3,497,000)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Total debt	4,496,600)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Shareholders’ equity	20,907,400)	20,247,900)	19,361,900)	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	25,404,000)	20,247,900)	19,361,900)	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	0.18	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	0.00	0.00
Benchmarks
Debt to Capital, Competitors²
AbbVie Inc.	1.06	1.09	1.10	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.	0.79	0.83	0.86	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.	0.65	0.66	0.69	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.	0.33	0.34	0.26	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.	0.55	0.62	0.58	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.	0.67	0.69	0.49	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	0.35	0.37	0.40	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.	0.55	0.56	0.52	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.	0.41	0.43	0.42	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.	0.07	0.08	0.08	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.	0.43	0.45	0.45	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

¹ Q3 2026 Calculation
Debt to capital = Total debt ÷ Total capital
= 4,496,600 ÷ 25,404,000 = 0.18

² Click competitor name to see calculations.

An analysis of the solvency metrics indicates a period of significant capital expansion characterized by a general upward trajectory in total capital, interrupted by a sharp contraction in mid-2024. The overall capital base grew from 10.9 billion US dollars in March 2022 to 25.4 billion US dollars by September 2026.

Total Capital Trends: A consistent increase in total capital was observed from March 2022 through March 2024, where the value rose from 10.9 billion US dollars to a peak of 18.5 billion US dollars. A significant reduction occurred in June 2024, with capital falling to 14.8 billion US dollars. Following this contraction, a steady recovery and growth phase ensued, culminating in a period high of 25.4 billion US dollars in September 2026.
Debt Position and Solvency: For the vast majority of the analyzed period, no total debt was recorded, suggesting a debt-free capital structure. However, by September 30, 2026, total debt was recorded at 4.5 billion US dollars. This introduction of leverage resulted in a debt to capital ratio of 0.18, indicating that debt comprises 18% of the company's total capital structure as of the final reporting period.

AI Ask an analyst for more

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?

Vertex Pharmaceuticals Inc., debt to capital (including operating lease liability) calculation (quarterly data)

	Sep 30, 2026	Jun 30, 2026	Mar 31, 2026	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)
Short-term debt	999,600)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Long-term debt	3,497,000)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Total debt	4,496,600)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Long-term operating lease liabilities	1,981,800)	1,977,600)	1,986,500)	1,846,500)	1,834,800)	1,527,400)	1,537,700)	1,544,400)	1,588,900)	586,800)	359,800)	348,600)	354,400)	363,500)	371,600)	379,500)	382,300)	365,000)	377,000)
Total debt (including operating lease liability)	6,478,400)	1,977,600)	1,986,500)	1,846,500)	1,834,800)	1,527,400)	1,537,700)	1,544,400)	1,588,900)	586,800)	359,800)	348,600)	354,400)	363,500)	371,600)	379,500)	382,300)	365,000)	377,000)
Shareholders’ equity	20,907,400)	20,247,900)	19,361,900)	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 (including operating lease liability)	27,385,800)	22,225,500)	21,348,400)	20,512,300)	19,153,600)	18,702,800)	18,034,000)	17,954,000)	17,219,800)	15,361,500)	18,906,400)	17,929,000)	16,867,200)	15,833,700)	14,803,900)	14,292,200)	13,411,900)	12,298,500)	11,284,000)
Solvency Ratio
Debt to capital (including operating lease liability)¹	0.24	0.09	0.09	0.09	0.10	0.08	0.09	0.09	0.09	0.04	0.02	0.02	0.02	0.02	0.03	0.03	0.03	0.03	0.03

¹ Q3 2026 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 6,478,400 ÷ 27,385,800 = 0.24

The financial trajectory of the solvency profile exhibits two distinct phases: a prolonged period of minimal leverage followed by a significant expansion of debt obligations beginning in mid-2024.

Low Leverage Phase (March 2022 – March 2024): During this interval, total debt remained relatively stagnant, fluctuating within a narrow range between US$ 348.6 million and US$ 382.3 million. Concurrently, total capital demonstrated steady growth, increasing from US$ 11.28 billion to US$ 18.91 billion. As a result, the debt-to-capital ratio remained negligible, oscillating between 0.02 and 0.03, reflecting an extremely conservative capital structure and a primary reliance on equity financing.
Initial Debt Accumulation (June 2024 – March 2026): A shift in financing strategy is evident starting in June 2024, where total debt rose to US$ 586.8 million, followed by a sharp increase to US$ 1.59 billion by September 2024. This movement pushed the debt-to-capital ratio from 0.04 to 0.09. Throughout the subsequent quarters leading into March 2026, debt levels continued a gradual ascent to US$ 1.99 billion, while the ratio stabilized between 0.08 and 0.10, indicating a controlled increase in leverage.
Significant Leverage Expansion (June 2026 – September 2026): The final observed period is characterized by a substantial surge in liabilities. Total debt increased from US$ 1.98 billion in June 2026 to US$ 6.48 billion by September 2026. This rapid accumulation of debt led to a marked increase in the debt-to-capital ratio, which climbed to 0.24. This represents the most significant shift in the company's solvency position across the entire analyzed timeframe, moving the organization toward a more leveraged balance sheet.

AI Ask an analyst for more

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?

Vertex Pharmaceuticals Inc., debt to assets calculation (quarterly data)

	Sep 30, 2026	Jun 30, 2026	Mar 31, 2026	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)
Short-term debt	999,600)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Long-term debt	3,497,000)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Total debt	4,496,600)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)

Total assets	32,736,300)	27,423,300)	26,484,400)	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	0.14	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	0.00	0.00
Benchmarks
Debt to Assets, Competitors²
AbbVie Inc.	0.55	0.52	0.53	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.	0.56	0.60	0.62	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.	0.48	0.49	0.51	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.	0.28	0.29	0.22	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.	0.33	0.39	0.37	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.	0.51	0.53	0.39	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	0.23	0.24	0.27	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.	0.41	0.42	0.38	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	0.31	0.31	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.	0.06	0.06	0.07	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	0.38	0.38	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

¹ Q3 2026 Calculation
Debt to assets = Total debt ÷ Total assets
= 4,496,600 ÷ 32,736,300 = 0.14

² Click competitor name to see calculations.

An examination of the financial position from March 2022 through September 2026 reveals a significant expansion of the asset base and a strategic shift in capital structure toward the end of the observed period.

Total Asset Trajectory: A consistent upward trend in total assets is observed from March 31, 2022, when assets stood at 14.26 billion US dollars, rising steadily to 23.92 billion US dollars by March 31, 2024. A temporary contraction occurred in June 2024, with assets decreasing to 20.13 billion US dollars, followed by a period of sustained growth that culminated in a peak of 32.74 billion US dollars by September 30, 2026.
Debt and Leverage Analysis: For the majority of the period analyzed, no total debt was recorded, indicating an unleveraged capital structure. This changed by the final reporting date of September 30, 2026, with the introduction of 4.50 billion US dollars in total debt. This shift resulted in a debt-to-assets ratio of 0.14, suggesting that 14% of the total assets are financed through debt.
Solvency Interpretation: The transition from a debt-free status to a debt-to-assets ratio of 0.14 indicates a move toward utilizing leverage while maintaining a conservative solvency profile. Given the substantial growth in the asset base to 32.74 billion US dollars, the current level of debt remains relatively low compared to the overall scale of the balance sheet.

AI Ask an analyst for more

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?

Vertex Pharmaceuticals Inc., debt to assets (including operating lease liability) calculation (quarterly data)

	Sep 30, 2026	Jun 30, 2026	Mar 31, 2026	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)
Short-term debt	999,600)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Long-term debt	3,497,000)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Total debt	4,496,600)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)	—)
Long-term operating lease liabilities	1,981,800)	1,977,600)	1,986,500)	1,846,500)	1,834,800)	1,527,400)	1,537,700)	1,544,400)	1,588,900)	586,800)	359,800)	348,600)	354,400)	363,500)	371,600)	379,500)	382,300)	365,000)	377,000)
Total debt (including operating lease liability)	6,478,400)	1,977,600)	1,986,500)	1,846,500)	1,834,800)	1,527,400)	1,537,700)	1,544,400)	1,588,900)	586,800)	359,800)	348,600)	354,400)	363,500)	371,600)	379,500)	382,300)	365,000)	377,000)

Total assets	32,736,300)	27,423,300)	26,484,400)	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 assets (including operating lease liability)¹	0.20	0.07	0.08	0.07	0.07	0.06	0.07	0.07	0.07	0.03	0.02	0.02	0.02	0.02	0.02	0.02	0.02	0.02	0.03

¹ Q3 2026 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 6,478,400 ÷ 32,736,300 = 0.20

The solvency profile exhibits a transition from a highly conservative capital structure to a period of increased leverage. Between March 2022 and March 2024, the company maintained a minimal debt-to-assets ratio, consistently fluctuating between 0.02 and 0.03, indicating a heavy reliance on equity or internal funding and a negligible debt burden relative to total resources.

Debt Accumulation Patterns: A significant shift in borrowing occurred starting in June 2024. Total debt, including operating lease liabilities, rose from 359.8 million USD in March 2024 to 586.8 million USD in June 2024, followed by a sharp increase to 1.589 billion USD by September 2024. Following a period of relative stabilization between 1.5 billion USD and 1.9 billion USD throughout 2025 and early 2026, a substantial surge is observed in September 2026, where total debt escalated to 6.478 billion USD.
Asset Growth Trajectory: Total assets demonstrated a consistent upward trend for the majority of the analyzed period, increasing from 14.256 billion USD in March 2022 to 32.736 billion USD by September 2026. A temporary contraction in assets was noted in June 2024, dropping to 20.132 billion USD from 23.917 billion USD in the preceding quarter, though the growth trend resumed immediately thereafter.
Solvency Ratio Analysis: The debt-to-assets ratio remained stagnant at 0.02 for the bulk of 2022 and 2023. Beginning in June 2024, the ratio began to climb, stabilizing in a range between 0.06 and 0.08 from September 2024 through June 2026. The period concludes with a dramatic spike to 0.20 in September 2026, reflecting a rapid increase in liabilities that outpaced the growth of the asset base.

The overall trend indicates that while the company historically operated with very low leverage, the final quarters of the period show a strategic increase in debt. The jump to a 0.20 ratio in September 2026 represents a fundamental change in the solvency position, shifting the balance of financing significantly toward debt.

AI Ask an analyst for more

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?

Vertex Pharmaceuticals Inc., financial leverage calculation (quarterly data)

	Sep 30, 2026	Jun 30, 2026	Mar 31, 2026	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	32,736,300)	27,423,300)	26,484,400)	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	20,907,400)	20,247,900)	19,361,900)	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	1.57	1.35	1.37	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.	6.69	8.18	10.07	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.	3.79	3.93	4.31	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.	1.74	1.76	1.58	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.	3.68	4.20	3.74	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.	3.94	4.17	2.39	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	2.42	2.37	2.47	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.	2.96	3.10	2.80	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.	2.30	2.36	2.30	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.	1.33	1.32	1.30	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.	2.09	2.15	2.18	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

¹ Q3 2026 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= 32,736,300 ÷ 20,907,400 = 1.57

² Click competitor name to see calculations.

A sustained expansion of the balance sheet is observed between March 2022 and September 2026. Total assets increased from 14.26 billion US dollars to 32.74 billion US dollars, while shareholders' equity rose from 10.91 billion US dollars to 20.91 billion US dollars. While both metrics trended upward, the growth in assets outpaced the growth in equity, leading to a gradual increase in the company's financial leverage over the long term.

Initial Leverage Stability: From March 2022 through December 2023, the financial leverage ratio remained remarkably stable, fluctuating within a tight range between 1.28 and 1.32. This period reflects a consistent capital structure where the proportion of total assets funded by equity remained nearly constant.
Period of Increased Volatility: Beginning in early 2024, a shift in the leverage trend occurred. A simultaneous contraction in both total assets and shareholders' equity in June 2024 resulted in a leverage ratio increase to 1.36. This upward movement peaked at 1.42 in September 2024, indicating a temporary increase in the reliance on liabilities to support the asset base.
Terminal Leverage Surge: Throughout 2025 and 2026, the leverage ratio generally fluctuated between 1.35 and 1.44. However, a significant spike to 1.57 is recorded in September 2026. This represents the highest leverage level in the analyzed period, coinciding with a sharp increase in total assets to 32.74 billion US dollars, suggesting a strategic increase in financial gearing to fund rapid asset expansion in the final quarter.

AI Ask an analyst for more

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.

How can I help you?

Vertex Pharmaceuticals Inc., interest coverage calculation (quarterly data)

	Sep 30, 2026	Jun 30, 2026	Mar 31, 2026	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)	653,600)	1,099,800)	1,031,400)	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	129,800)	292,000)	221,500)	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	36,000)	—)	—)	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)	819,400)	1,391,800)	1,252,900)	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	122.10	800.17	502.52	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.	5.19	4.86	4.38	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.	14.38	17.31	17.95	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.	-1.51	-0.96	11.68	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	19.03	25.90	25.00	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.	122.77	94.25	108.44	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.	6.10	6.17	6.03	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

¹ Q3 2026 Calculation
Interest coverage = (EBIT_{Q3 2026} + EBIT_{Q2 2026} + EBIT_{Q1 2026} + EBIT_{Q4 2025}) ÷ (Interest expense_{Q3 2026} + Interest expense_{Q2 2026} + Interest expense_{Q1 2026} + Interest expense_{Q4 2025})
= (819,400 + 1,391,800 + 1,252,900 + 1,334,300) ÷ (36,000 + 0 + 0 + 3,300) = 122.10

² Click competitor name to see calculations.

The analysis of interest coverage for the period between March 31, 2022, and September 30, 2026, reveals a trajectory characterized by an initial steady expansion, a period of significant volatility in 2024, and a subsequent peak in solvency strength before a correction in late 2026.

Initial Growth and Stability (2022–Early 2024): From March 31, 2022, to March 31, 2024, the interest coverage ratio exhibited a consistent upward trend, rising from 48.17 to 111.61. This improvement was driven by a combination of generally increasing Earnings before interest and tax (EBIT), which grew from approximately 969.7 million to 1.29 billion, and a gradual reduction in quarterly interest expenses, which fell from 14.9 million to 10.4 million.
Mid-2024 Volatility and Recovery: A sharp contraction in the interest coverage ratio occurred on June 30, 2024, dropping to 6.14. This decline was the direct result of a substantial negative EBIT of 3.38 billion. However, a rapid recovery followed, with the ratio returning to positive growth as EBIT normalized and interest expenses continued to decline, reaching a low of 2.8 million by December 31, 2024.
Peak Solvency Phase (2025–Mid 2026): The period between March 2025 and June 2026 saw an exponential increase in the interest coverage ratio, peaking at 800.17. During this window, interest expenses remained exceptionally low, fluctuating between 3.0 million and 3.7 million, while EBIT remained robust, generally exceeding 1.2 billion. This divergence created an extremely high margin of safety for debt servicing.
Late 2026 Correction: A significant reversal is observed on September 30, 2026, where the interest coverage ratio fell sharply to 122.10. This correction was triggered by a simultaneous decrease in EBIT to 819.4 million and a substantial spike in interest expenses to 36 million, representing the highest interest cost recorded in the analyzed period.

AI Ask an analyst for more