Vertex Pharmaceuticals Incorporated cash flow to debt ratio of 93.53% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.

Vertex Pharmaceuticals Incorporated's free cash flow has increased -504.13% from $-790.30M last year to $3.19B, signaling increasing performance

Vertex Pharmaceuticals Incorporated's debt to equity ratio is 0.00, which means that the company's assets are healthy financed, signaling financial stability.

Vertex Pharmaceuticals Incorporated's debt has decreased relative to shareholder equity from 0.11 last year to 0.00 today, signaling strengthened financials

Vertex Pharmaceuticals Incorporated has a net cash position, so leverage is healthy.

Vertex Pharmaceuticals Incorporated earns at least as much interest as it pays. Interest obligations are fully covered.

Vertex Pharmaceuticals Incorporated's profit margin has increased (-817.96%) in the last year from -4.86% to 34.89%, signaling increasing performance

Vertex Pharmaceuticals Incorporated's short-term assets of $11.20B exceed its short-term liabilities of $3.86B

Vertex Pharmaceuticals Incorporated's return on assets of 16.06% is higher than the 5.00% threshold, indicating efficient asset utilization

Vertex Pharmaceuticals Incorporated's return on equity of 23.31%, is higher than 15.00%, indicating good performance

Vertex Pharmaceuticals Incorporated's operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation

Vertex Pharmaceuticals Incorporated had positive net income in 4 out of 5 years, indicating stable and consistent earnings

Vertex Pharmaceuticals Incorporated has positive free cash flow, indicating the company generates cash after capital expenditures

Vertex Pharmaceuticals Incorporated has a free cash flow yield of 2.40%, which is above the 2.00% threshold, indicating strong cash generation relative to market value

Vertex Pharmaceuticals Incorporated's yearly earnings has increased -838.09% since last year from $-535.60M to $3.95B, signaling increasing performance

Vertex Pharmaceuticals Incorporated's yearly revenue has increased 8.90% since last year from $11.02B to $12.00B, signaling increasing performance

ROIC 17.33% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.

Vertex Pharmaceuticals Incorporated's 3-year revenue CAGR of 10.58% is positive, indicating growing revenue over the past 3 years

Vertex Pharmaceuticals Incorporated had revenue growth in 5 out of 5 years, indicating consistent revenue performance

Vertex Pharmaceuticals Incorporated had positive ROE in 4 out of 5 years, indicating consistent and reliable returns on equity

Vertex Pharmaceuticals Incorporated is overvalued relative to its fair value price of 160.16 based on Discounted Cash Flow model

Vertex Pharmaceuticals Incorporated has an earnings yield of 3.31%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Vertex Pharmaceuticals Incorporated is overvalued relative to its fair value price of 141.46 based on EBITDA multiple model

Vertex Pharmaceuticals Incorporated has an EV/EBITDA ratio of 26.78x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

Vertex Pharmaceuticals Incorporated is overvalued relative to its fair value price of 368.78 based on Earnings Fair Value model

Vertex Pharmaceuticals Incorporated has a PEG-ratio over 1 which is considered overvalued

Vertex Pharmaceuticals Incorporated has a price-to-book ratio of 6.57x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

Vertex Pharmaceuticals Incorporated has a price-to-sales ratio of 10.54x, which exceeds the 8.00x threshold, indicating the stock may be overvalued relative to its revenue