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Vertex Pharmaceuticals (HAM:VX1) Debt-to-EBITDA : -0.07 (As of Jun. 2024)


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What is Vertex Pharmaceuticals Debt-to-EBITDA?

Debt-to-EBITDA measures a company's ability to pay off its debt.

Vertex Pharmaceuticals's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2024 was €0 Mil. Vertex Pharmaceuticals's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2024 was €867 Mil. Vertex Pharmaceuticals's annualized EBITDA for the quarter that ended in Jun. 2024 was €-12,364 Mil. Vertex Pharmaceuticals's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2024 was -0.07.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Vertex Pharmaceuticals's Debt-to-EBITDA or its related term are showing as below:

HAM:VX1' s Debt-to-EBITDA Range Over the Past 10 Years
Min: -2.01   Med: 0.31   Max: 11.14
Current: 2.01

During the past 13 years, the highest Debt-to-EBITDA Ratio of Vertex Pharmaceuticals was 11.14. The lowest was -2.01. And the median was 0.31.

HAM:VX1's Debt-to-EBITDA is ranked worse than
56.88% of 269 companies
in the Biotechnology industry
Industry Median: 1.5 vs HAM:VX1: 2.01

Vertex Pharmaceuticals Debt-to-EBITDA Historical Data

The historical data trend for Vertex Pharmaceuticals's Debt-to-EBITDA can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Vertex Pharmaceuticals Debt-to-EBITDA Chart

Vertex Pharmaceuticals Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.42 0.28 0.33 0.20 0.18

Vertex Pharmaceuticals Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Debt-to-EBITDA Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.16 0.15 0.17 0.13 -0.07

Competitive Comparison of Vertex Pharmaceuticals's Debt-to-EBITDA

For the Biotechnology subindustry, Vertex Pharmaceuticals's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Vertex Pharmaceuticals's Debt-to-EBITDA Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Vertex Pharmaceuticals's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Vertex Pharmaceuticals's Debt-to-EBITDA falls into.



Vertex Pharmaceuticals Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Vertex Pharmaceuticals's Debt-to-EBITDA for the fiscal year that ended in Dec. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(76.753 + 664.55) / 4222.968
=0.18

Vertex Pharmaceuticals's annualized Debt-to-EBITDA for the quarter that ended in Jun. 2024 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(0 + 867.129) / -12364.248
=-0.07

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Jun. 2024) EBITDA data.


Vertex Pharmaceuticals  (HAM:VX1) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


Vertex Pharmaceuticals Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of Vertex Pharmaceuticals's Debt-to-EBITDA provided by GuruFocus.com. Please click on the following links to see related term pages.


Vertex Pharmaceuticals Business Description

Address
50 Northern Avenue, Boston, MA, USA, 02210
Vertex Pharmaceuticals is a global biotechnology company that discovers and develops small-molecule drugs for the treatment of serious diseases. Its key drugs are Kalydeco, Orkambi, Symdeko, and Trikafta/Kaftrio for cystic fibrosis, where Vertex therapies remain the standard of care globally. Vertex has diversified its portfolio through Casgevy, a gene-editing therapy for beta thalassemia and sickle-cell disease. Additionally, Vertex is evaluating small-molecule inhibitors targeting acute and chronic pain using nonopioid treatments, and small-molecule inhibitors of APOL1-mediated kidney diseases. Vertex is also investigating cell therapies to deliver a potential functional cure for type 1 diabetes.

Vertex Pharmaceuticals Headlines

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