Vertex Pharmaceuticals Financials

VRTX Stock  USD 394.28  0.80  0.20%   
Based on the key indicators related to Vertex Pharmaceuticals' liquidity, profitability, solvency, and operating efficiency, Vertex Pharmaceuticals is performing exceptionally good at this time. It has a great odds to report excellent financial results in May. At this time, Vertex Pharmaceuticals' Cash And Short Term Investments are fairly stable compared to the past year. Liabilities And Stockholders Equity is likely to rise to about 23.9 B in 2024, despite the fact that Net Debt is likely to grow to (9.1 B). Key indicators impacting Vertex Pharmaceuticals' financial strength include:
Current ValueLast YearChange From Last Year 10 Year Trend
Debt Equity Ratio0.04370.046
Notably Down
Slightly volatile
Current Ratio3.793.9872
Notably Down
Very volatile
The financial analysis of Vertex Pharmaceuticals is a critical element in measuring its lifeblood. The essential information of the day-to-day investment outlook for Vertex Pharmaceuticals includes many different criteria found on its balance sheet. For example, investors should never minimize Vertex Pharmaceuticals' ability to pay suppliers or employees on time, making sure interest payments are not accumulating or correctly timing where and how to re-invest extra cash. Any individual investor needs to monitor Vertex Pharmaceuticals' cash flow, debt, and profitability to effectively and accurately make more informed decisions on whether to invest in Vertex Pharmaceuticals.

Net Income

3.8 Billion

With this module, you can analyze Vertex financials for your investing period. You should be able to track the changes in Vertex Pharmaceuticals individual financial statements over time to develop the understanding of its risk, liquidity, profitability, or other critical and vital indicators.
  
Understanding current and past Vertex Pharmaceuticals Financials, including the trends in assets, liabilities, equity and income are directly related to making proper and timely investing decisions. All of Vertex Pharmaceuticals' financial statements are interrelated, with each one affecting the others. For example, an increase in Vertex Pharmaceuticals' assets may result in an increase in income on the income statement.
The data published in Vertex Pharmaceuticals' official financial statements usually reflect Vertex Pharmaceuticals' business processes, product offerings, services, and other fundamental events. But there are other numbers, ratios, or fundamental indicators derived from these statements that are easier to understand and visualize within the underlying realities that drive quantitative information of Vertex Pharmaceuticals. For example, before you start analyzing numbers published by Vertex accountants, it's critical to develop an understanding of what Vertex Pharmaceuticals' liquidity, profitability, and earnings quality are in the context of the Biotechnology space in which it operates.
Please note, the presentation of Vertex Pharmaceuticals' financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Vertex Pharmaceuticals' management is honest, while the outside auditors are strict and uncompromising. Whatever the case, the imprecision that can be found in Vertex Pharmaceuticals' accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Vertex Pharmaceuticals. Please utilize our Beneish M Score to check the likelihood of Vertex Pharmaceuticals' management manipulating its earnings.

Vertex Pharmaceuticals Stock Summary

Vertex Pharmaceuticals competes with Biomarin Pharmaceutical, Sarepta Therapeutics, Alnylam Pharmaceuticals, Intellia Therapeutics, and Editas Medicine. Vertex Pharmaceuticals Incorporated, a biotechnology company, engages in developing and commercializing therapies for treating cystic fibrosis. Vertex Pharmaceuticals Incorporated was founded in 1989 and is headquartered in Boston, Massachusetts. Vertex Pharmaceutic operates under Biotechnology classification in the United States and is traded on NASDAQ Exchange. It employs 00 people.
Foreign Associate
  Mexico
Specialization
Health Care, Pharmaceuticals, Biotechnology & Life Sciences
InstrumentUSA Stock View All
ExchangeNASDAQ Exchange
ISINUS92532F1003
CUSIP92532F100
LocationMassachusetts; U.S.A
Business Address50 Northern Avenue,
SectorBiotechnology
IndustryHealth Care
BenchmarkNYSE Composite
Websitewww.vrtx.com
Phone617 341 6100
CurrencyUSD - US Dollar
You should never invest in Vertex Pharmaceuticals without having analyzed its financial statements. Do not rely on someone else's analysis or guesses about the future performance of Vertex Stock, because this is throwing your money away. Analyzing the key information contained in Vertex Pharmaceuticals' financial statements can give you an edge over other investors and help to ensure that your investments perform well for you.

Vertex Pharmaceuticals Key Financial Ratios

Generally speaking, Vertex Pharmaceuticals' financial ratios allow both analysts and investors to convert raw data from Vertex Pharmaceuticals' financial statements into concise, actionable information that can be used to evaluate the performance of Vertex Pharmaceuticals over time and compare it to other companies across industries. There are many critical financial ratios that investors are exposed to on a daily basis, but they are usually grouped into few meaningful categories from each financial statement that Vertex Pharmaceuticals reports annually and quarterly.

Vertex Pharmaceuticals Key Balance Sheet Accounts

201920202021202220232024 (projected)
Total Assets8.3B11.8B13.4B18.2B22.7B23.9B
Other Current Liab1.0B1.2B1.5B1.9B2.9B3.1B
Net Debt(2.5B)(5.4B)(6.2B)(9.9B)(9.6B)(9.1B)
Retained Earnings(1.9B)858.7M3.2B6.5B10.1B10.6B
Cash3.1B6.0B6.8B10.5B10.4B10.9B
Other Current Assets213.5M308.4M187.2M74.4M620.5M651.5M
Total Liab2.2B3.1B3.3B4.2B5.1B5.4B
Total Current Assets4.6B7.8B9.0B12.7B14.1B14.9B
Short Term Debt30.3M42.4M46.9M89.4M83.7M51.0M
Accounts Payable87.6M155.1M195M303.9M364.9M383.1M
Net Receivables633.5M885.4M1.1B1.4B1.6B1.6B
Common Stock2.6M2.6M2.5M2.6M3.0M2.0M
Other Assets1.2B587.0M986.9M1.4B1.6B1.7B
Other Liab275.5M923.4M902.2M685.8M788.7M828.1M
Inventory167.5M280.8M353.1M460.6M738.8M775.7M
Net Tangible Assets4.7B7.3B8.7B12.2B14.1B14.8B
Long Term Debt Total583.9M581.6M538.6M539.0M619.9M632.6M

Vertex Pharmaceuticals Key Income Statement Accounts

An income statement is very similar to a cash flow statement, but instead of showing net revenue minus expenses, it only includes earnings before interest and taxes (EBIT). This number does not have all of the same line items that are on a cash flow statement, but it leaves out non-cash expenses like depreciation and amortization. For example, if you bought $100 worth of goods from Walmart (WMT) using your debit card that has an interest rate of 20%, then paid off the balance at the end of the month with a credit card that charges 30% interest, you would have an income statement showing EBIT of $80 because your expenses are lower than the amount that went into your pocket. The other reason investors look at the income statement is to determine what Vertex Pharmaceuticals' earnings per share (EPS) will be in order to see if they want to buy more shares or not. For example, if a company earned $20 million in the last quarter and has 100,000 shares outstanding, its EPS is 20 cents. If you find that this number beats analysts' forecasts or is higher than it was from the same period last year, then you might want to buy more of this stock even though its price per share may not have changed.
201920202021202220232024 (projected)
Total Revenue4.2B6.2B7.6B8.9B9.8B10.3B
Gross Profit3.6B5.5B6.7B7.9B8.6B9.0B
Operating Income1.2B2.9B2.8B4.3B3.8B3.9B
Ebit1.2B2.9B2.8B4.3B3.8B3.9B
Ebitda1.5B3.2B2.8B4.3B3.9B4.1B
Net Income1.2B2.7B2.3B3.3B3.6B3.8B
Income Tax Expense218.1M405.2M388.3M910.4M760.2M798.2M
Cost Of Revenue547.8M736.3M904.2M1.1B1.3B1.3B
Income Before Tax1.4B3.1B2.7B4.2B4.4B4.6B
Research Development1.8B1.8B3.1B2.5B3.7B3.9B
Interest Expense58.5M58.2M61.5M54.8M44.1M28.9M
Tax Provision218.1M405.2M388.3M910.4M760.2M798.2M
Interest Income63.7M22.2M4.9M144.6M614.7M645.4M
Net Interest Income5.2M(35.9M)(56.6M)89.8M570.6M599.1M

Vertex Pharmaceuticals Key Cash Accounts

Cash flow analysis captures how much money flows into and out of Vertex Pharmaceuticals. It measures of how well Vertex is doing because it can show the actual money that comes into and out of the Company from sales instead of measuring expenses against revenue to determine earnings. You have to read the cash flow statement in three sections. The first section shows how much money Vertex Pharmaceuticals brought in, usually known as net revenue or sales. This is different from earnings because it does not include expenses when determining net revenue for use on this part of the cash flow statement. Next, are operating activities, which show how much money Vertex had leftover after paying for its expenses. This number can be calculated in two ways: by subtracting the total of all operating expenses from net revenue or by adding up changes to cash and other assets or liabilities on this part of the statement. The third section is about investing activities, which shows what Vertex Pharmaceuticals has done with the money that it received from the sale of assets or what it spent to acquire new ones. This section can be broken down into two parts: investing in existing businesses (in other words, buying more stock) and investing in non-business activities like paying off debt or making acquisitions.
201920202021202220232024 (projected)
Change In Cash462.4M2.9B811.2M3.7B(139.7M)(132.7M)
Free Cash Flow1.5B3.0B2.4B3.9B3.3B3.4B
Depreciation106.9M109.5M125.6M148.3M181.3M190.4M
Capital Expenditures75.5M259.8M235M204.7M258.4M271.3M
Net Income1.2B2.7B2.3B3.3B3.6B3.8B
End Period Cash Flow3.1B6.0B6.8B10.5B10.4B10.9B
Other Non Cash Items(176.2M)(220.0M)(5.8M)103.4M(42.6M)(40.5M)
Change To Inventory(64.0M)(132.0M)(92.8M)(136.4M)(322.9M)(306.8M)
Dividends Paid20.8M10.0M264.9M102M117.3M123.2M
Investments33.7M378.5M(28.9M)227.3M(2.1B)(2.0B)
Change Receivables(225.6M)(223.4M)(274.7M)(358.6M)(322.7M)(306.6M)
Net Borrowings(35.0M)(29.0M)(24.4M)(85.5M)(77.0M)(73.1M)
Change To Netincome381.9M521.4M452.7M445.6M512.4M437.4M

Vertex Financial Ratios Relationships

Comparative valuation techniques use various fundamental indicators to help in determining Vertex Pharmaceuticals's current stock value. Our valuation model uses many indicators to compare Vertex Pharmaceuticals value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Vertex Pharmaceuticals competition to find correlations between indicators driving Vertex Pharmaceuticals's intrinsic value. More Info.
Vertex Pharmaceuticals is rated first in return on equity category among related companies. It is rated first in return on asset category among related companies reporting about  0.57  of Return On Asset per Return On Equity. The ratio of Return On Equity to Return On Asset for Vertex Pharmaceuticals is roughly  1.75 . At this time, Vertex Pharmaceuticals' Return On Equity is fairly stable compared to the past year.Comparative valuation analysis is a catch-all model that can be used if you cannot value Vertex Pharmaceuticals by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Vertex Pharmaceuticals' Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Vertex Pharmaceuticals' earnings, one of the primary drivers of an investment's value.

Vertex Pharmaceuticals Systematic Risk

Vertex Pharmaceuticals' systematic risk plays a vital role in portfolio allocation when considering its stock to be added to a well-diversified portfolio. Vertex Pharmaceuticals volatility which cannot be eliminated through diversification, requires returns over the risk-free rate. Over the long run, a well-diversified portfolio provides returns that match its exposure to systematic risk. In this case, investors face a trade-off between expected returns and systematic risk and, therefore, can only reduce a portfolio's exposure to systematic risk by sacrificing expected returns on the portfolio.
The output start index for this execution was six with a total number of output elements of fifty-five. The Beta measures systematic risk based on how returns on Vertex Pharmaceuticals correlated with the market. If Beta is less than 0 Vertex Pharmaceuticals generally moves in the opposite direction as compared to the market. If Vertex Pharmaceuticals Beta is about zero movement of price series is uncorrelated with the movement of the benchmark. if Beta is between zero and one Vertex Pharmaceuticals is generally moves in the same direction as, but less than the movement of the market. For Beta = 1 movement of Vertex Pharmaceuticals is generally in the same direction as the market. If Beta > 1 Vertex Pharmaceuticals moves generally in the same direction as, but more than the movement of the benchmark.

About Vertex Pharmaceuticals Financials

What exactly are Vertex Pharmaceuticals Financials? Typically, a company's financial statements are the reports that show the financial position of the company. Three primary documents fall into the category of financial statements. These documents include Vertex Pharmaceuticals' income statement, its balance sheet, and the statement of cash flows. Potential Vertex Pharmaceuticals investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Vertex Pharmaceuticals investors may use each financial statement separately, they are all related. The changes in Vertex Pharmaceuticals's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Vertex Pharmaceuticals's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.

Steps to analyze Vertex Pharmaceuticals Financials for Investing

There are several different ways that investors can use financial statements to try and predict whether a stock price will go up or down. Unfortunately, there is no surefire formula, but there are some general guidelines you should consider when looking at the numbers. First, realize what kind of company it is so you know if its revenues are more likely to grow or shrink over time. For example, a software company's revenue is expected to increase yearly due to new products and services that its customers will want to buy. At the same time, a car manufacturer might not be able to sell as many cars when the economy slows down, so it would have less net income during those times. Second, pay attention to its debt-to-equity ratio because this number will tell you how much risk it has. If a company such as Vertex Pharmaceuticals is not taking on any additional risks, its debt-to-equity should be less than one. As a general rule of thumb, if the market value or book value (which can be found in the footnotes) of assets exceeds the company's liabilities, then it is probably in good shape. Finally, use other financial statements to determine if a stock price will go up or down because investors are always looking for growth opportunities when they buy new stocks. For example, if you see that the net revenue of Vertex has grown by more than 25% over the last five years, then there is a good chance that it will continue growing by at least 20% or more each year. On the other hand, if you see that net revenue has only increased by about 15%, which is barely above inflation levels, then chances are it will not grow much faster than this over time, and investors may shy away from buying it.
In summary, you can determine if Vertex Pharmaceuticals' financials are consistent with your investment objective using the following steps:
  • Review Vertex Pharmaceuticals' balance sheet accounts, such as liabilities and equity, to understand its overall financial position.
  • Analyze the income statement and examine the company's revenue, expenses, and profits over time to determine its financial performance.
  • Study the cash flow inflows and outflows to understand Vertex Pharmaceuticals' liquidity and solvency.
  • Look at the growth rates in revenue, earnings, and cash flow over time to determine its potential for future growth.
  • Compare Vertex Pharmaceuticals' financials to those of its peers to see how it stacks up and identify any potential red flags.
  • Use valuation ratios to evaluate the company's financials using commonly used ratios such as the price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and enterprise value-to-earnings before interest, taxes, depreciation, and amortization (EV/EBITDA) ratio to determine if Vertex Pharmaceuticals' stock is overvalued or undervalued.
Remember, these are just guidelines and should not be the only basis for investment decisions. It is always important to analyze the leading stock market indicators., conduct additional research and seek professional advice if needed.

Vertex Pharmaceuticals Thematic Clasifications

Vertex Pharmaceuticals is part of Pharmaceutical Products investing theme. If you are a theme-oriented, socially responsible, and at the same time, a result-driven investor, you can align your investing habits with your values without jeopardizing your expectations about returns. You can easily create an optimal portfolio of stocks, ETFs, funds, or cryptocurrencies based on a specific theme of your liking. USA Equities from Pharmaceutical Products industry as classified by Fama & French. Fama and French investing themes focus on testing asset pricing under different economic assumptions
Pharmaceutical ProductsView
This theme covers USA Equities from Pharmaceutical Products industry as classified by Fama & French. Fama and French investing themes focus on testing asset pricing under different economic assumptions. Get More Thematic Ideas
Today, most investors in Vertex Pharmaceuticals Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Vertex Pharmaceuticals' growth ratios. Consistent increases or decreases in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's growth growth rates may not be enough to decide which company is a better investment. That's why investors frequently use static breakdown of Vertex Pharmaceuticals growth as a starting point in their analysis.

Price Earnings To Growth Ratio

3.65

At this time, Vertex Pharmaceuticals' Price Earnings To Growth Ratio is fairly stable compared to the past year.

Vertex Pharmaceuticals April 21, 2024 Opportunity Range

Along with financial statement analysis, the daily predictive indicators of Vertex Pharmaceuticals help investors to analyze its daily demand and supply, volume, patterns, and price swings to determine the real value of Vertex Pharmaceuticals. We use our internally-developed statistical techniques to arrive at the intrinsic value of Vertex Pharmaceuticals based on widely used predictive technical indicators. In general, we focus on analyzing Vertex Stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Vertex Pharmaceuticals's daily price indicators and compare them against related drivers.
When determining whether Vertex Pharmaceuticals offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Vertex Pharmaceuticals' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Vertex Pharmaceuticals Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Vertex Pharmaceuticals Stock:
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Vertex Pharmaceuticals. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in estimate.
For more information on how to buy Vertex Stock please use our How to Invest in Vertex Pharmaceuticals guide.
You can also try the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.

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When running Vertex Pharmaceuticals' price analysis, check to measure Vertex Pharmaceuticals' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Vertex Pharmaceuticals is operating at the current time. Most of Vertex Pharmaceuticals' value examination focuses on studying past and present price action to predict the probability of Vertex Pharmaceuticals' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Vertex Pharmaceuticals' price. Additionally, you may evaluate how the addition of Vertex Pharmaceuticals to your portfolios can decrease your overall portfolio volatility.
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Is Vertex Pharmaceuticals' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Vertex Pharmaceuticals. If investors know Vertex will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Vertex Pharmaceuticals listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.181
Earnings Share
13.89
Revenue Per Share
38.297
Quarterly Revenue Growth
0.093
Return On Assets
0.1317
The market value of Vertex Pharmaceuticals is measured differently than its book value, which is the value of Vertex that is recorded on the company's balance sheet. Investors also form their own opinion of Vertex Pharmaceuticals' value that differs from its market value or its book value, called intrinsic value, which is Vertex Pharmaceuticals' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Vertex Pharmaceuticals' market value can be influenced by many factors that don't directly affect Vertex Pharmaceuticals' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Vertex Pharmaceuticals' value and its price as these two are different measures arrived at by different means. Investors typically determine if Vertex Pharmaceuticals is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Vertex Pharmaceuticals' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.