Vertex Pharmaceuticals (Vertex Pharmaceuticals) Inventory Turnover : 0.52 (As of Dec. 2023)

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What is Vertex Pharmaceuticals Inventory Turnover?

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Vertex Pharmaceuticals's Cost of Goods Sold for the three months ended in Dec. 2023 was $368 Mil. Vertex Pharmaceuticals's Average Total Inventories for the quarter that ended in Dec. 2023 was $714 Mil. Vertex Pharmaceuticals's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.52.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Vertex Pharmaceuticals's Days Inventory for the three months ended in Dec. 2023 was 176.98.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Vertex Pharmaceuticals's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.28.

Vertex Pharmaceuticals Inventory Turnover Historical Data

The historical data trend for Vertex Pharmaceuticals's Inventory Turnover 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.

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Vertex Pharmaceuticals Inventory Turnover Chart

Vertex Pharmaceuticals Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Inventory Turnover

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3.75

3.28

2.85

2.66

2.10

Vertex Pharmaceuticals Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Inventory Turnover	Get a 7-Day Free Trial															0.67	0.54	0.54	0.49	0.52

Vertex Pharmaceuticals Inventory Turnover Calculation

Vertex Pharmaceuticals's Inventory Turnover for the fiscal year that ended in Dec. 2023 is calculated as

	Inventory Turnover (A: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Dec. 2023 )	/ (	(Total Inventories (A: Dec. 2022 )	+	Total Inventories (A: Dec. 2023 ))	/	count )
=	1262.2	/ (	(460.6	+	738.8)	/	2 )
=	1262.2	/	599.7
=	2.10

Vertex Pharmaceuticals's Inventory Turnover for the quarter that ended in Dec. 2023 is calculated as

	Inventory Turnover (Q: Dec. 2023 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Dec. 2023 )	/ (	(Total Inventories (Q: Sep. 2023 )	+	Total Inventories (Q: Dec. 2023 ))	/	count )
=	368	/ (	(688.7	+	738.8)	/	2 )
=	368	/	713.75
=	0.52

Vertex Pharmaceuticals (NAS:VRTX) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Vertex Pharmaceuticals's Days Inventory for the three months ended in Dec. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2023 )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
	=	713.75	/	368	*	365 / 4
	=	176.98

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Vertex Pharmaceuticals's Inventory to Revenue for the quarter that ended in Dec. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	713.75	/	2517.7
	=	0.28

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Vertex Pharmaceuticals Inventory Turnover Related Terms

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Vertex Pharmaceuticals (Vertex Pharmaceuticals) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Vertex Pharmaceuticals Inc (NAS:VRTX) » Definitions » Inventory Turnover

Comparable Companies

Traded in Other Exchanges

VRTX:Mexico 1VRTX:Italy VX1d:UK VX1:Germany VX1:Germany VX1:Germany VX1:Germany VRTX34:Brazil VRTX:Austria

Address

50 Northern Avenue, Boston, MA, USA, 02210

Website

https://www.vrtx.com

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 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 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.

Executives

Jeffrey M Leiden	director	15 N BEACH ROAD, HOBE SOUND FL 33455
Wagner Charles F Jr	officer: EVP & Chief Financial Officer	C/O MILLIPORE CORP, BILLERICA MA 01820
Reshma Kewalramani	director, officer: CEO & President	C/O VERTEX PHARMACEUTICALS, INC., 50 NORTHERN AVENUE, BOSTON MA 02210
Stuart A Arbuckle	officer: EVP, COO	VERTEX PHARMACEUTICALS INCORPORATED, 130 WAVERLY ST., CAMBRIDGE MA 02139
Amit Sachdev	officer: SVP, Public Policy,Gov Affairs	C/O VERTEX PHARMACEUTICALS INCORPORATED, 130 WAVERLY STREET, CAMBRIDGE MA 02139
David Altshuler	officer: EVP, Global Research and CSO	C/O VERTEX PHARMACEUTICALS INCORPORATED, 130 WAVERLY STREET, CAMBRIDGE MA 02139
Carmen Bozic	officer: EVP and CMO	C/O VERTEX PHARMACEUTICALS, INC., 50 NORTHERN AVENUE, BOSTON MA 02210
Bruce I Sachs	director	C/O VERTEX PHARMACEUTICALS, INC., 50 NORTHERN AVENUE, BOSTON MA 02210
Sangeeta N. Bhatia	director	C/O VERTEX PHARMACEUTICALS, INC., 50 NORTHERN AVENUE, BOSTON MA 02210
Michel Lagarde	director	450 LEXINGTON AVE., 31ST FLOOR, NEW YORK NY 10017
Atkinson Edward Morrow Iii	officer: EVP, Chief Technical Ops. Off.	C/O 89BIO, INC., 142 SANSOME STREET, SECOND FLOOR, SAN FRANCISCO CA 94104
Ourania Tatsis	officer: EVP, Chief Reg. & Quality Off.	C/O VERTEX PHARMACEUTICALS, INC., 50 NORTHERN AVENUE, BOSTON MA 02210
Terrence C Kearney	director	IN CARE OF HOSPIRA, INC., 275 NORTH FIELD DRIVE, LAKE FOREST IL 60045
Kristen Ambrose	officer: SVP & Chief Accounting Officer	C/O VERTEX PHARMACEUTICALS INCORPORATED, 50 NORTHERN AVENUE, BOSTON MA 02210
Bastiano Sanna	officer: EVP, Cell & Genetic Therapies	C/O VERTEX PHARMACEUTICALS INCORPORATED, 50 NORTHERN AVENUE, BOSTON MA 02210