Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Vertex Pharmaceuticals Inc. (NASDAQ:VRTX)

Analysis of Solvency Ratios
Quarterly Data

Beginner level

Solvency ratios also known as long-term debt ratios measure a company’s ability to meet long-term obligations.

Solvency Ratios (Summary)

Vertex Pharmaceuticals Inc., solvency ratios (quarterly data)

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Debt Ratios
Debt to equity 0.07 0.07 0.08 0.09 0.10 0.11 0.12 0.13 0.20 0.22 0.24 0.29 0.32 0.33 0.35 0.71 0.79 0.82 0.84 0.86 0.87 0.91 0.83
Debt to capital 0.06 0.06 0.08 0.08 0.09 0.10 0.11 0.12 0.17 0.18 0.19 0.22 0.24 0.25 0.26 0.42 0.44 0.45 0.46 0.46 0.47 0.48 0.45
Debt to assets 0.05 0.05 0.06 0.06 0.07 0.08 0.09 0.09 0.12 0.13 0.15 0.16 0.18 0.17 0.18 0.28 0.31 0.32 0.32 0.32 0.33 0.34 0.38
Financial leverage 1.39 1.36 1.38 1.37 1.43 1.39 1.39 1.41 1.59 1.61 1.65 1.75 1.79 1.97 1.96 2.50 2.55 2.60 2.60 2.66 2.64 2.65 2.22
Coverage Ratios
Interest coverage 52.77 40.26 30.99 24.84 12.91 13.16 11.02 9.28 11.26 3.07 0.05 0.73 -0.65 4.75 3.80 0.17 -1.01 -1.63 -3.67 -5.62 — — —

Based on: 10-Q (filing date: 2020-10-30), 10-Q (filing date: 2020-07-31), 10-Q (filing date: 2020-05-01), 10-K (filing date: 2020-02-13), 10-Q (filing date: 2019-10-31), 10-Q (filing date: 2019-08-01), 10-Q (filing date: 2019-05-01), 10-K (filing date: 2019-02-13), 10-Q (filing date: 2018-10-25), 10-Q (filing date: 2018-07-26), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-15), 10-Q (filing date: 2017-10-30), 10-Q (filing date: 2017-07-28), 10-Q (filing date: 2017-04-28), 10-K (filing date: 2017-02-23), 10-Q (filing date: 2016-10-31), 10-Q (filing date: 2016-08-01), 10-Q (filing date: 2016-05-03), 10-K (filing date: 2016-02-16), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-08-04), 10-Q (filing date: 2015-05-04).

Solvency ratio Description The company
Debt to equity ratio A solvency ratio calculated as total debt divided by total shareholders’ equity. Vertex Pharmaceuticals Inc.’s debt to equity ratio improved from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020.
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Vertex Pharmaceuticals Inc.’s debt to capital ratio improved from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Vertex Pharmaceuticals Inc.’s debt to assets ratio improved from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020.
Financial leverage ratio A solvency ratio calculated as total assets divided by total shareholders’ equity. Vertex Pharmaceuticals Inc.’s financial leverage ratio decreased from Q1 2020 to Q2 2020 but then increased from Q2 2020 to Q3 2020 exceeding Q1 2020 level.
Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Vertex Pharmaceuticals Inc.’s interest coverage ratio improved from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020.

Debt to Equity

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

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Selected Financial Data (US$ in thousands)
Senior secured term loan, current portion —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  297,751  221,576  146,251  71,478  —  42,873  28,527 
Credit facility —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  300,000  —  —  —  —  —  —  — 
Long-term finance lease liabilities 546,514  522,067  532,952  538,576  541,561  551,530  560,381  581,550  576,530  577,675  578,206  583,902  567,310  550,365  529,130  521,335  504,792  506,691  511,380  515,534  511,997  515,734  519,442 
Senior secured term loan, excluding current portion —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  74,921  149,571  223,969  294,832  251,939  266,266 
Total debt 546,514  522,067  532,952  538,576  541,561  551,530  560,381  581,550  576,530  577,675  578,206  583,902  567,310  550,365  529,130  821,335  802,543  803,188  807,202  810,981  806,829  810,546  814,235 
 
Total Vertex shareholders’ equity 8,133,473  7,519,242  6,461,654  6,085,244  5,253,394  5,069,965  4,723,313  4,435,203  2,906,116  2,686,228  2,401,056  2,028,579  1,791,077  1,671,273  1,500,008  1,156,582  1,021,546  981,354  957,079  939,967  922,147  894,964  976,458 
Solvency Ratio
Debt to equity1 0.07 0.07 0.08 0.09 0.10 0.11 0.12 0.13 0.20 0.22 0.24 0.29 0.32 0.33 0.35 0.71 0.79 0.82 0.84 0.86 0.87 0.91 0.83
Benchmarks
Debt to Equity, Competitors2
Abbott Laboratories 0.59 0.64 0.60 0.58 0.60 0.61 0.62 0.64 0.77 0.68 0.70 0.90 0.75 0.76 0.76 1.07 0.41 0.43 0.41 0.42 0.40 0.38 0.41
AbbVie Inc. 5.70 5.94 — — — — — — — — 10.49 7.33 5.65 6.20 7.39 7.95 5.77 6.71 6.87 8.03 6.61 5.65 11.09
Amgen Inc. 3.13 3.21 3.36 3.09 2.73 2.84 3.05 2.71 2.40 2.31 2.28 1.40 1.11 1.11 1.11 1.16 1.15 1.10 1.20 1.12 1.14 1.16 1.14
Biogen Inc. 0.69 0.66 0.48 0.45 0.43 0.46 0.43 0.46 0.43 0.48 0.42 0.47 0.51 0.56 0.57 0.54 0.54 0.57 0.63 0.70 0.62 0.05 0.05
Bristol-Myers Squibb Co. 0.90 0.95 0.94 0.91 1.41 1.56 0.40 0.52 0.54 0.60 0.60 0.68 0.57 0.56 0.59 0.41 0.44 0.45 0.47 0.47 0.48 0.49 0.48
Eli Lilly & Co. 3.51 3.99 5.60 5.88 4.50 5.68 6.44 1.30 0.97 1.06 0.81 1.18 0.90 0.87 0.73 0.74 0.60 0.64 0.54 0.55 0.53 0.55 0.55
Gilead Sciences Inc. 1.68 1.34 1.09 1.09 1.19 1.15 1.21 1.28 1.19 1.34 1.41 1.64 1.18 1.16 1.29 1.39 1.60 1.42 1.70 1.20 1.28 0.75 0.72
Illumina Inc. 0.25 0.25 0.25 0.25 0.25 0.26 0.44 0.53 0.57 0.42 0.45 0.49 0.46 0.48 0.49 0.58 0.54 0.50 0.51 0.59 0.57 0.73 0.80
Johnson & Johnson 0.59 0.48 0.45 0.47 0.50 0.48 0.50 0.51 0.48 0.51 0.51 0.57 0.48 0.48 0.46 0.39 0.37 0.36 0.32 0.28 0.28 0.27 0.28
Merck & Co. Inc. 0.98 1.12 1.07 1.02 0.97 0.96 0.94 0.94 0.73 0.72 0.70 0.71 0.71 0.63 0.71 0.62 0.57 0.56 0.59 0.59 0.58 0.57 0.63
Pfizer Inc. 0.97 0.99 0.80 0.83 0.81 0.78 0.77 0.66 0.58 0.58 0.56 0.61 0.72 0.75 0.75 0.71 0.70 0.70 0.62 0.60 0.58 0.53 0.53
Regeneron Pharmaceuticals Inc. 0.27 0.24 0.06 0.06 0.07 0.07 0.08 0.08 0.09 0.10 0.11 0.11 0.12 0.13 0.15 0.11 0.09 0.09 0.10 0.10 0.12 0.12 0.16
Zoetis Inc. 2.14 2.58 2.35 2.38 2.41 2.67 2.78 2.95 3.04 2.52 2.53 2.80 2.87 2.66 2.78 3.00 2.82 3.29 3.84 4.56 2.96 3.10 2.85

Based on: 10-Q (filing date: 2020-10-30), 10-Q (filing date: 2020-07-31), 10-Q (filing date: 2020-05-01), 10-K (filing date: 2020-02-13), 10-Q (filing date: 2019-10-31), 10-Q (filing date: 2019-08-01), 10-Q (filing date: 2019-05-01), 10-K (filing date: 2019-02-13), 10-Q (filing date: 2018-10-25), 10-Q (filing date: 2018-07-26), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-15), 10-Q (filing date: 2017-10-30), 10-Q (filing date: 2017-07-28), 10-Q (filing date: 2017-04-28), 10-K (filing date: 2017-02-23), 10-Q (filing date: 2016-10-31), 10-Q (filing date: 2016-08-01), 10-Q (filing date: 2016-05-03), 10-K (filing date: 2016-02-16), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-08-04), 10-Q (filing date: 2015-05-04).

1 Q3 2020 Calculation
Debt to equity = Total debt ÷ Total Vertex shareholders’ equity
= 546,514 ÷ 8,133,473 = 0.07

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.’s debt to equity ratio improved from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020.

Debt to Capital

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

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Selected Financial Data (US$ in thousands)
Senior secured term loan, current portion —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  297,751  221,576  146,251  71,478  —  42,873  28,527 
Credit facility —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  300,000  —  —  —  —  —  —  — 
Long-term finance lease liabilities 546,514  522,067  532,952  538,576  541,561  551,530  560,381  581,550  576,530  577,675  578,206  583,902  567,310  550,365  529,130  521,335  504,792  506,691  511,380  515,534  511,997  515,734  519,442 
Senior secured term loan, excluding current portion —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  74,921  149,571  223,969  294,832  251,939  266,266 
Total debt 546,514  522,067  532,952  538,576  541,561  551,530  560,381  581,550  576,530  577,675  578,206  583,902  567,310  550,365  529,130  821,335  802,543  803,188  807,202  810,981  806,829  810,546  814,235 
Total Vertex shareholders’ equity 8,133,473  7,519,242  6,461,654  6,085,244  5,253,394  5,069,965  4,723,313  4,435,203  2,906,116  2,686,228  2,401,056  2,028,579  1,791,077  1,671,273  1,500,008  1,156,582  1,021,546  981,354  957,079  939,967  922,147  894,964  976,458 
Total capital 8,679,987  8,041,309  6,994,606  6,623,820  5,794,955  5,621,495  5,283,694  5,016,753  3,482,646  3,263,903  2,979,262  2,612,481  2,358,387  2,221,638  2,029,138  1,977,917  1,824,089  1,784,542  1,764,281  1,750,948  1,728,976  1,705,510  1,790,693 
Solvency Ratio
Debt to capital1 0.06 0.06 0.08 0.08 0.09 0.10 0.11 0.12 0.17 0.18 0.19 0.22 0.24 0.25 0.26 0.42 0.44 0.45 0.46 0.46 0.47 0.48 0.45
Benchmarks
Debt to Capital, Competitors2
Abbott Laboratories 0.37 0.39 0.38 0.37 0.38 0.38 0.38 0.39 0.43 0.40 0.41 0.47 0.43 0.43 0.43 0.52 0.29 0.30 0.29 0.30 0.28 0.28 0.29
AbbVie Inc. 0.85 0.86 1.12 1.14 1.27 1.30 1.27 1.27 1.08 1.10 0.91 0.88 0.85 0.86 0.88 0.89 0.85 0.87 0.87 0.89 0.87 0.85 0.92
Amgen Inc. 0.76 0.76 0.77 0.76 0.73 0.74 0.75 0.73 0.71 0.70 0.69 0.58 0.53 0.53 0.53 0.54 0.53 0.52 0.54 0.53 0.53 0.54 0.53
Biogen Inc. 0.41 0.40 0.32 0.31 0.30 0.31 0.30 0.31 0.30 0.33 0.30 0.32 0.34 0.36 0.36 0.35 0.35 0.36 0.39 0.41 0.38 0.04 0.05
Bristol-Myers Squibb Co. 0.47 0.49 0.48 0.48 0.59 0.61 0.28 0.34 0.35 0.37 0.38 0.40 0.36 0.36 0.37 0.29 0.30 0.31 0.32 0.32 0.33 0.33 0.32
Eli Lilly & Co. 0.78 0.80 0.85 0.85 0.82 0.85 0.87 0.57 0.49 0.51 0.45 0.54 0.47 0.47 0.42 0.42 0.37 0.39 0.35 0.35 0.35 0.35 0.36
Gilead Sciences Inc. 0.63 0.57 0.52 0.52 0.54 0.54 0.55 0.56 0.54 0.57 0.59 0.62 0.54 0.54 0.56 0.58 0.62 0.59 0.63 0.54 0.56 0.43 0.42
Illumina Inc. 0.20 0.20 0.20 0.20 0.20 0.21 0.30 0.35 0.36 0.30 0.31 0.33 0.31 0.32 0.33 0.37 0.35 0.33 0.34 0.37 0.36 0.42 0.44
Johnson & Johnson 0.37 0.33 0.31 0.32 0.33 0.33 0.33 0.34 0.33 0.34 0.34 0.37 0.32 0.32 0.32 0.28 0.27 0.27 0.24 0.22 0.22 0.21 0.22
Merck & Co. Inc. 0.50 0.53 0.52 0.50 0.49 0.49 0.48 0.48 0.42 0.42 0.41 0.42 0.41 0.39 0.42 0.38 0.36 0.36 0.37 0.37 0.37 0.36 0.39
Pfizer Inc. 0.49 0.50 0.45 0.45 0.45 0.44 0.43 0.40 0.37 0.37 0.36 0.38 0.42 0.43 0.43 0.41 0.41 0.41 0.38 0.38 0.37 0.34 0.35
Regeneron Pharmaceuticals Inc. 0.21 0.20 0.06 0.06 0.06 0.07 0.07 0.07 0.08 0.09 0.10 0.10 0.10 0.11 0.13 0.10 0.08 0.08 0.09 0.09 0.11 0.10 0.14
Zoetis Inc. 0.68 0.72 0.70 0.70 0.71 0.73 0.74 0.75 0.75 0.72 0.72 0.74 0.74 0.73 0.74 0.75 0.74 0.77 0.79 0.82 0.75 0.76 0.74

Based on: 10-Q (filing date: 2020-10-30), 10-Q (filing date: 2020-07-31), 10-Q (filing date: 2020-05-01), 10-K (filing date: 2020-02-13), 10-Q (filing date: 2019-10-31), 10-Q (filing date: 2019-08-01), 10-Q (filing date: 2019-05-01), 10-K (filing date: 2019-02-13), 10-Q (filing date: 2018-10-25), 10-Q (filing date: 2018-07-26), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-15), 10-Q (filing date: 2017-10-30), 10-Q (filing date: 2017-07-28), 10-Q (filing date: 2017-04-28), 10-K (filing date: 2017-02-23), 10-Q (filing date: 2016-10-31), 10-Q (filing date: 2016-08-01), 10-Q (filing date: 2016-05-03), 10-K (filing date: 2016-02-16), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-08-04), 10-Q (filing date: 2015-05-04).

1 Q3 2020 Calculation
Debt to capital = Total debt ÷ Total capital
= 546,514 ÷ 8,679,987 = 0.06

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.’s debt to capital ratio improved from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020.

Debt to Assets

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

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Selected Financial Data (US$ in thousands)
Senior secured term loan, current portion —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  297,751  221,576  146,251  71,478  —  42,873  28,527 
Credit facility —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  300,000  —  —  —  —  —  —  — 
Long-term finance lease liabilities 546,514  522,067  532,952  538,576  541,561  551,530  560,381  581,550  576,530  577,675  578,206  583,902  567,310  550,365  529,130  521,335  504,792  506,691  511,380  515,534  511,997  515,734  519,442 
Senior secured term loan, excluding current portion —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  —  74,921  149,571  223,969  294,832  251,939  266,266 
Total debt 546,514  522,067  532,952  538,576  541,561  551,530  560,381  581,550  576,530  577,675  578,206  583,902  567,310  550,365  529,130  821,335  802,543  803,188  807,202  810,981  806,829  810,546  814,235 
 
Total assets 11,301,633  10,216,367  8,893,201  8,318,465  7,514,553  7,033,471  6,543,114  6,245,898  4,620,840  4,335,386  3,952,974  3,546,014  3,198,325  3,285,594  2,946,703  2,896,787  2,609,641  2,548,982  2,487,906  2,498,875  2,433,993  2,374,073  2,165,827 
Solvency Ratio
Debt to assets1 0.05 0.05 0.06 0.06 0.07 0.08 0.09 0.09 0.12 0.13 0.15 0.16 0.18 0.17 0.18 0.28 0.31 0.32 0.32 0.32 0.33 0.34 0.38
Benchmarks
Debt to Assets, Competitors2
Abbott Laboratories 0.27 0.29 0.27 0.27 0.28 0.28 0.28 0.29 0.33 0.30 0.31 0.37 0.33 0.34 0.34 0.42 0.22 0.22 0.22 0.22 0.20 0.20 0.21
AbbVie Inc. 0.58 0.58 0.74 0.75 0.65 0.65 0.65 0.68 0.61 0.60 0.54 0.53 0.55 0.56 0.56 0.56 0.56 0.56 0.59 0.60 0.59 0.58 0.57
Amgen Inc. 0.53 0.53 0.52 0.50 0.50 0.52 0.52 0.51 0.51 0.51 0.50 0.44 0.45 0.44 0.44 0.45 0.45 0.44 0.46 0.44 0.44 0.45 0.44
Biogen Inc. 0.30 0.29 0.23 0.22 0.22 0.23 0.22 0.23 0.23 0.25 0.23 0.25 0.28 0.30 0.31 0.28 0.30 0.30 0.32 0.33 0.32 0.03 0.04
Bristol-Myers Squibb Co. 0.36 0.36 0.36 0.36 0.43 0.45 0.17 0.21 0.22 0.23 0.23 0.24 0.25 0.25 0.26 0.20 0.20 0.21 0.21 0.21 0.23 0.23 0.22
Eli Lilly & Co. 0.39 0.39 0.42 0.39 0.40 0.41 0.42 0.29 0.28 0.29 0.26 0.30 0.31 0.30 0.27 0.27 0.25 0.26 0.23 0.22 0.22 0.22 0.23
Gilead Sciences Inc. 0.48 0.43 0.40 0.40 0.42 0.41 0.42 0.43 0.42 0.44 0.44 0.48 0.45 0.44 0.46 0.46 0.48 0.44 0.48 0.43 0.44 0.31 0.32
Illumina Inc. 0.16 0.16 0.16 0.16 0.16 0.16 0.24 0.29 0.29 0.23 0.24 0.25 0.26 0.27 0.27 0.30 0.29 0.26 0.27 0.30 0.30 0.35 0.37
Johnson & Johnson 0.22 0.19 0.18 0.18 0.19 0.19 0.20 0.20 0.20 0.21 0.21 0.22 0.23 0.23 0.22 0.19 0.19 0.19 0.17 0.15 0.15 0.15 0.15
Merck & Co. Inc. 0.32 0.34 0.33 0.31 0.31 0.32 0.31 0.30 0.28 0.27 0.27 0.28 0.29 0.27 0.29 0.26 0.26 0.25 0.26 0.26 0.26 0.26 0.28
Pfizer Inc. 0.35 0.36 0.31 0.31 0.31 0.30 0.29 0.26 0.24 0.25 0.25 0.25 0.26 0.26 0.26 0.25 0.25 0.26 0.24 0.23 0.23 0.22 0.22
Regeneron Pharmaceuticals Inc. 0.17 0.15 0.05 0.05 0.05 0.05 0.06 0.06 0.07 0.07 0.08 0.08 0.08 0.09 0.09 0.07 0.06 0.06 0.06 0.06 0.08 0.09 0.11
Zoetis Inc. 0.56 0.59 0.56 0.56 0.57 0.59 0.59 0.60 0.62 0.58 0.57 0.58 0.61 0.59 0.58 0.58 0.58 0.59 0.60 0.62 0.54 0.55 0.57

Based on: 10-Q (filing date: 2020-10-30), 10-Q (filing date: 2020-07-31), 10-Q (filing date: 2020-05-01), 10-K (filing date: 2020-02-13), 10-Q (filing date: 2019-10-31), 10-Q (filing date: 2019-08-01), 10-Q (filing date: 2019-05-01), 10-K (filing date: 2019-02-13), 10-Q (filing date: 2018-10-25), 10-Q (filing date: 2018-07-26), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-15), 10-Q (filing date: 2017-10-30), 10-Q (filing date: 2017-07-28), 10-Q (filing date: 2017-04-28), 10-K (filing date: 2017-02-23), 10-Q (filing date: 2016-10-31), 10-Q (filing date: 2016-08-01), 10-Q (filing date: 2016-05-03), 10-K (filing date: 2016-02-16), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-08-04), 10-Q (filing date: 2015-05-04).

1 Q3 2020 Calculation
Debt to assets = Total debt ÷ Total assets
= 546,514 ÷ 11,301,633 = 0.05

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.’s debt to assets ratio improved from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020.

Financial Leverage

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

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Selected Financial Data (US$ in thousands)
Total assets 11,301,633  10,216,367  8,893,201  8,318,465  7,514,553  7,033,471  6,543,114  6,245,898  4,620,840  4,335,386  3,952,974  3,546,014  3,198,325  3,285,594  2,946,703  2,896,787  2,609,641  2,548,982  2,487,906  2,498,875  2,433,993  2,374,073  2,165,827 
Total Vertex shareholders’ equity 8,133,473  7,519,242  6,461,654  6,085,244  5,253,394  5,069,965  4,723,313  4,435,203  2,906,116  2,686,228  2,401,056  2,028,579  1,791,077  1,671,273  1,500,008  1,156,582  1,021,546  981,354  957,079  939,967  922,147  894,964  976,458 
Solvency Ratio
Financial leverage1 1.39 1.36 1.38 1.37 1.43 1.39 1.39 1.41 1.59 1.61 1.65 1.75 1.79 1.97 1.96 2.50 2.55 2.60 2.60 2.66 2.64 2.65 2.22
Benchmarks
Financial Leverage, Competitors2
Abbott Laboratories 2.20 2.25 2.21 2.18 2.15 2.16 2.19 2.20 2.33 2.24 2.26 2.47 2.26 2.25 2.26 2.56 1.90 1.93 1.91 1.94 1.98 1.92 1.97
AbbVie Inc. 9.80 10.17 — — — — — — — — 19.52 13.89 10.29 11.15 13.14 14.26 10.30 11.92 11.57 13.45 11.28 9.78 19.39
Amgen Inc. 5.90 6.10 6.50 6.17 5.45 5.50 5.91 5.31 4.69 4.54 4.56 3.17 2.49 2.51 2.54 2.60 2.54 2.50 2.62 2.55 2.57 2.59 2.60
Biogen Inc. 2.32 2.26 2.08 2.04 1.96 2.03 1.91 1.94 1.85 1.95 1.86 1.88 1.79 1.88 1.85 1.88 1.82 1.89 2.00 2.08 1.96 1.33 1.30
Bristol-Myers Squibb Co. 2.50 2.61 2.59 2.52 3.25 3.44 2.29 2.49 2.47 2.65 2.59 2.86 2.30 2.27 2.28 2.08 2.16 2.20 2.22 2.23 2.11 2.11 2.16
Eli Lilly & Co. 9.10 10.25 13.35 15.07 11.20 13.91 15.32 4.47 3.41 3.67 3.05 3.88 2.89 2.90 2.68 2.77 2.41 2.49 2.31 2.44 2.39 2.46 2.39
Gilead Sciences Inc. 3.49 3.10 2.71 2.74 2.87 2.79 2.86 2.98 2.81 3.02 3.18 3.44 2.60 2.66 2.82 3.02 3.36 3.22 3.57 2.80 2.91 2.40 2.23
Illumina Inc. 1.58 1.59 1.57 1.59 1.60 1.61 1.85 1.85 1.93 1.80 1.84 1.91 1.77 1.79 1.80 1.95 1.89 1.94 1.91 1.99 1.93 2.06 2.16
Johnson & Johnson 2.65 2.51 2.53 2.65 2.67 2.55 2.54 2.56 2.41 2.47 2.48 2.61 2.10 2.12 2.06 2.01 1.93 1.93 1.88 1.88 1.86 1.86 1.89
Merck & Co. Inc. 3.08 3.28 3.24 3.26 3.10 3.04 2.99 3.09 2.63 2.61 2.56 2.56 2.40 2.35 2.42 2.38 2.25 2.23 2.25 2.28 2.22 2.21 2.27
Pfizer Inc. 2.74 2.77 2.56 2.65 2.62 2.62 2.64 2.51 2.35 2.36 2.25 2.41 2.83 2.89 2.89 2.88 2.82 2.72 2.58 2.59 2.56 2.40 2.39
Regeneron Pharmaceuticals Inc. 1.59 1.59 1.30 1.34 1.33 1.35 1.36 1.34 1.37 1.38 1.43 1.43 1.44 1.47 1.61 1.57 1.52 1.52 1.57 1.53 1.57 1.36 1.41
Zoetis Inc. 3.81 4.38 4.19 4.26 4.21 4.56 4.70 4.93 4.94 4.37 4.43 4.85 4.67 4.55 4.75 5.14 4.87 5.54 6.40 7.41 5.44 5.61 5.03

Based on: 10-Q (filing date: 2020-10-30), 10-Q (filing date: 2020-07-31), 10-Q (filing date: 2020-05-01), 10-K (filing date: 2020-02-13), 10-Q (filing date: 2019-10-31), 10-Q (filing date: 2019-08-01), 10-Q (filing date: 2019-05-01), 10-K (filing date: 2019-02-13), 10-Q (filing date: 2018-10-25), 10-Q (filing date: 2018-07-26), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-15), 10-Q (filing date: 2017-10-30), 10-Q (filing date: 2017-07-28), 10-Q (filing date: 2017-04-28), 10-K (filing date: 2017-02-23), 10-Q (filing date: 2016-10-31), 10-Q (filing date: 2016-08-01), 10-Q (filing date: 2016-05-03), 10-K (filing date: 2016-02-16), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-08-04), 10-Q (filing date: 2015-05-04).

1 Q3 2020 Calculation
Financial leverage = Total assets ÷ Total Vertex shareholders’ equity
= 11,301,633 ÷ 8,133,473 = 1.39

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.’s financial leverage ratio decreased from Q1 2020 to Q2 2020 but then increased from Q2 2020 to Q3 2020 exceeding Q1 2020 level.

Interest Coverage

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

Microsoft Excel LibreOffice Calc
Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016 Mar 31, 2016 Dec 31, 2015 Sep 30, 2015 Jun 30, 2015 Mar 31, 2015
Selected Financial Data (US$ in thousands)
Net income (loss) attributable to Vertex 667,434  837,270  602,753  583,234  57,518  267,427  268,631  1,550,527  128,746  207,360  210,263  100,684  (102,952) 17,996  247,756  32,945  (38,841) (64,525) (41,631) (73,731) (95,149) (188,848) (198,606)
Add: Net income attributable to noncontrolling interest —  —  —  —  —  —  —  (25,431) (290) (1,110) 17,038  1,501  (188,315) 13,173  1,792  (5,186) (696) 28,374  5,529  (938) 1,333  (32,144) (98)
Add: Income tax expense 78,437  (12,500) 54,781  93,716  13,148  59,711  51,534  (1,492,599) 8,055  10,341  (12,659) 10,257  (125,903) 4,337  3,985  (7,453) 503  18,130  5,485  (1,379) 1,330  30,131  299 
Add: Interest expense 13,856  13,871  14,136  14,249  14,548  14,837  14,868  18,744  18,686  18,155  16,886  12,547  13,574  14,664  16,765  20,439  20,140  20,155  20,698  20,654  21,134  21,111  21,307 
Earnings before interest and tax (EBIT) 759,727  838,641  671,670  691,199  85,214  341,975  335,033  51,241  155,197  234,746  231,528  124,989  (403,596) 50,170  270,298  40,745  (18,894) 2,134  (9,919) (55,394) (71,352) (169,750) (177,098)
Solvency Ratio
Interest coverage1 52.77 40.26 30.99 24.84 12.91 13.16 11.02 9.28 11.26 3.07 0.05 0.73 -0.65 4.75 3.80 0.17 -1.01 -1.63 -3.67 -5.62 — — —
Benchmarks
Interest Coverage, Competitors2
Abbott Laboratories 7.66 6.80 7.39 7.09 6.47 5.67 4.99 4.48 3.82 3.67 3.13 3.47 4.12 3.43 4.58 4.28 5.29 10.30 14.76 20.53 — — —
Amgen Inc. 7.62 7.62 7.85 8.09 7.97 7.63 7.61 7.86 7.98 8.35 8.41 8.36 8.44 8.46 8.25 8.27 8.23 8.30 8.35 8.29 — — —
Gilead Sciences Inc. 2.83 0.41 5.90 6.19 5.24 9.25 8.80 8.24 8.98 9.67 11.41 13.10 15.11 16.36 17.29 18.74 21.04 24.25 28.35 32.48 — — —
Illumina Inc. 19.80 21.05 23.15 22.50 18.34 16.69 15.85 16.68 19.94 20.81 20.03 29.19 28.79 29.69 30.05 17.91 18.67 15.73 14.19 14.84 — — —
Johnson & Johnson 96.82 81.36 81.56 55.49 34.61 29.04 20.98 18.91 17.95 18.54 18.77 19.92 24.03 25.69 27.08 28.28 28.40 29.56 33.95 35.78 — — —
Regeneron Pharmaceuticals Inc. 72.22 108.12 90.22 81.43 72.82 69.19 86.34 91.55 91.46 93.35 93.76 83.75 85.15 103.77 119.78 185.82 158.42 135.89 120.37 87.03 — — —
Zoetis Inc. 9.79 9.72 9.71 9.08 8.88 8.46 8.69 9.20 9.64 10.12 9.87 9.71 8.99 8.60 8.52 8.40 7.54 7.66 5.65 5.40 — — —

Based on: 10-Q (filing date: 2020-10-30), 10-Q (filing date: 2020-07-31), 10-Q (filing date: 2020-05-01), 10-K (filing date: 2020-02-13), 10-Q (filing date: 2019-10-31), 10-Q (filing date: 2019-08-01), 10-Q (filing date: 2019-05-01), 10-K (filing date: 2019-02-13), 10-Q (filing date: 2018-10-25), 10-Q (filing date: 2018-07-26), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-15), 10-Q (filing date: 2017-10-30), 10-Q (filing date: 2017-07-28), 10-Q (filing date: 2017-04-28), 10-K (filing date: 2017-02-23), 10-Q (filing date: 2016-10-31), 10-Q (filing date: 2016-08-01), 10-Q (filing date: 2016-05-03), 10-K (filing date: 2016-02-16), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-08-04), 10-Q (filing date: 2015-05-04).

1 Q3 2020 Calculation
Interest coverage = (EBITQ3 2020 + EBITQ2 2020 + EBITQ1 2020 + EBITQ4 2019) ÷ (Interest expenseQ3 2020 + Interest expenseQ2 2020 + Interest expenseQ1 2020 + Interest expenseQ4 2019)
= (759,727 + 838,641 + 671,670 + 691,199) ÷ (13,856 + 13,871 + 14,136 + 14,249) = 52.77

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.’s interest coverage ratio improved from Q1 2020 to Q2 2020 and from Q2 2020 to Q3 2020.