Vertex Pharmaceuticals Inc (VRTX)

Fixed asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Revenue (ttm)	US$ in thousands	10,984,000	10,582,900	10,283,600	10,120,000	9,803,200	9,596,700	9,444,700	9,144,300	8,863,500	8,628,770	8,277,080	7,873,370	7,499,400	7,066,960	6,622,470	6,355,190	6,147,530	5,935,020	5,347,582	4,763,428
Property, plant and equipment	US$ in thousands	1,169,900	1,027,500	1,200,900	1,172,800	886,500	1,124,000	1,122,400	1,111,700	792,900	1,118,700	1,100,100	1,107,400	694,000	1,042,350	1,021,230	986,123	527,300	920,913	728,357	736,303
Fixed asset turnover		9.39	10.30	8.56	8.63	11.06	8.54	8.41	8.23	11.18	7.71	7.52	7.11	10.81	6.78	6.48	6.44	11.66	6.44	7.34	6.47

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $10,984,000K ÷ $1,169,900K
= 9.39

Fixed asset turnover is a financial ratio that measures a company's ability to generate revenue from its fixed assets. Looking at the data provided for Vertex Pharmaceuticals Inc, we observe fluctuations in the fixed asset turnover ratio over the reporting periods.

The fixed asset turnover for Vertex Pharmaceuticals Inc ranged from a low of 6.44 in September 2020 to a high of 11.66 in December 2020. This significant variation indicates changes in how efficiently the company is utilizing its fixed assets to generate sales revenue during this time period.

Subsequently, the ratio continued to fluctuate between approximately 6.44 and 10.81 in the following quarters, showing some stability but with occasional spikes. From March 2022 to December 2024, the fixed asset turnover maintained an upward trend, reaching a high of 11.18 in December 2022 and then fluctuating around 8.50 for the subsequent periods.

Overall, the upward trend observed in the latter part of the period suggests an improvement in the company's efficiency in utilizing its fixed assets to generate sales revenue. However, the fluctuations throughout the years indicate potential changes in business strategies, asset utilization, or industry conditions affecting Vertex Pharmaceuticals Inc's operational efficiency in revenue generation from fixed assets.