Vertex Pharmaceuticals Inc (VRTX)

Fixed asset turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	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	4,106,025	3,577,111	3,416,521	3,232,116
Property, plant and equipment	US$ in thousands	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	745,080	733,509	731,131	742,559
Fixed asset turnover		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	5.51	4.88	4.67	4.35

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $9,803,200K ÷ $886,500K
= 11.06

The fixed asset turnover ratio of Vertex Pharmaceuticals, Inc. has shown a consistent increasing trend throughout the quarters in 2022 and 2023, indicating that the company is generating more revenue relative to its investment in fixed assets. The ratio has steadily improved from 7.18 in Q1 2022 to 8.51 in Q4 2023, indicating that Vertex Pharmaceuticals is utilizing its fixed assets more efficiently to generate sales. This suggests that the company is effectively managing and utilizing its property, plant, and equipment to drive revenue growth. A high fixed asset turnover ratio is generally seen as a positive indicator of operational efficiency and effective asset utilization within the company.