Market Cap : 74.93 B | Enterprise Value : 67.45 B | PE Ratio : 23.62 | PB Ratio : 6.27 |
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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:
Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.
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.
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.
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:
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.
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 .
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.
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 |
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