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Vertex Pharmaceuticals Interest Coverage

: 76.64 (As of Jun. 2022)
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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Vertex Pharmaceuticals's Operating Income for the three months ended in Jun. 2022 was $1,119 Mil. Vertex Pharmaceuticals's Interest Expense for the three months ended in Jun. 2022 was $-15 Mil. Vertex Pharmaceuticals's interest coverage for the quarter that ended in Jun. 2022 was 76.64. The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Vertex Pharmaceuticals Inc has enough cash to cover all of its debt. Its financial situation is stable.

The historical rank and industry rank for Vertex Pharmaceuticals's Interest Coverage or its related term are showing as below:

VRTX' s Interest Coverage Range Over the Past 10 Years
Min: 0.14   Med: 9.16   Max: 68.24
Current: 68.24


VRTX's Interest Coverage is ranked worse than
59.34% of 391 companies
in the Biotechnology industry
Industry Median: 172.69 vs VRTX: 68.24

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Vertex Pharmaceuticals Interest Coverage Historical Data

The historical data trend for Vertex Pharmaceuticals's Interest Coverage 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 Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.67 9.16 20.55 49.30 45.19

Vertex Pharmaceuticals Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Interest Coverage 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 Premium Member Only Premium Member Only Premium Member Only 59.49 69.20 58.04 69.36 76.64

Competitive Comparison

For the Biotechnology subindustry, Vertex Pharmaceuticals's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution

For the Biotechnology industry and Healthcare sector, Vertex Pharmaceuticals's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Vertex Pharmaceuticals's Interest Coverage falls into.



Vertex Pharmaceuticals Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt.


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Vertex Pharmaceuticals's Interest Coverage for the fiscal year that ended in Dec. 2021 is calculated as

Here, for the fiscal year that ended in Dec. 2021, Vertex Pharmaceuticals's Interest Expense was $-62 Mil. Its Operating Income was $2,779 Mil. And its Long-Term Debt & Capital Lease Obligation was $887 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2021 )/Interest Expense (A: Dec. 2021 )
=-1*2779/-61.5
=45.19

Vertex Pharmaceuticals's Interest Coverage for the quarter that ended in Jun. 2022 is calculated as

Here, for the three months ended in Jun. 2022, Vertex Pharmaceuticals's Interest Expense was $-15 Mil. Its Operating Income was $1,119 Mil. And its Long-Term Debt & Capital Lease Obligation was $847 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*1119/-14.6
=76.64

* 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.

The higher the ratio, the stronger the company's Financial Strength is.


Vertex Pharmaceuticals  (NAS:VRTX) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Vertex Pharmaceuticals Interest Coverage Related Terms

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


Vertex Pharmaceuticals Business Description

Vertex Pharmaceuticals logo
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. In addition to its focus on cystic fibrosis, Vertex is diversifying its pipeline through gene-editing therapies such as CTX001 for beta-thalassemia and sickle-cell disease, small-molecule inhibitors targeting acute and chronic pain using non-opioid 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.
Executives
Upadhyay Suketu director 345 E. MAIN STREET WARSAW IN 46580
Garber Alan M director 3355 MILTON COURT MOUNTAIN VIEW CA 94040
Kearney Terrence C director IN CARE OF HOSPIRA, INC. 275 NORTH FIELD DRIVE LAKE FOREST IL 60045
Carney Lloyd director C/O MICROMUSE INC 139 TOWNSEND ST SAN FRANCISCO CA 94107
Mckenzie Diana director METLIFE 200 PARK AVENUE NEW YORK NY 10166
Bhatia Sangeeta N. director C/O VERTEX PHARMACEUTICALS, INC. 50 NORTHERN AVENUE BOSTON MA 02210
Lee Yuchun director 170 TRACER LA. WALTHAM MA 02451
Ambrose Kristen officer: SVP & Chief Accounting Officer C/O VERTEX PHARMACEUTICALS INCORPORATED 50 NORTHERN AVENUE BOSTON MA 02210
Mcglynn Margaret G director C/O MERCK & CO INC ONE MERCK DRIVE PO BOX 100 WHITEHOUSE STATION NJ 08889-0100
Liu Joy officer: SVP, General Counsel C/O VERTEX PHARMACEUTICALS INCORPORATED 50 NORTHERN AVENUE BOSTON MA 02210
Tatsis Ourania officer: EVP, Chief Reg. & Quality Off. C/O VERTEX PHARMACEUTICALS, INC. 50 NORTHERN AVENUE BOSTON MA 02210
Bozic Carmen officer: EVP and CMO C/O VERTEX PHARMACEUTICALS, INC. 50 NORTHERN AVENUE BOSTON MA 02210
Wagner Charles F Jr officer: EVP & Chief Financial Officer C/O MILLIPORE CORP BILLERICA MA 01820
Arbuckle Stuart A officer: EVP, COO VERTEX PHARMACEUTICALS INCORPORATED 130 WAVERLY ST. CAMBRIDGE MA 02139
Kewalramani Reshma director, officer: CEO & President C/O VERTEX PHARMACEUTICALS, INC. 50 NORTHERN AVENUE BOSTON MA 02210

Vertex Pharmaceuticals Headlines

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