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
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
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
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.
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:
* 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.
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 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.
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