Vertex Pharmaceuticals Inc (VRTX)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 9,803,200 | 8,863,500 | 7,499,400 | 6,135,450 | 4,105,510 |
| Total assets | US$ in thousands | 22,730,200 | 18,150,900 | 13,432,500 | 11,751,800 | 8,318,460 |
| Total asset turnover | 0.43 | 0.49 | 0.56 | 0.52 | 0.49 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $9,803,200K ÷ $22,730,200K
= 0.43
Total asset turnover measures a company's efficiency in generating sales revenue from its total assets. Vertex Pharmaceuticals, Inc.'s total asset turnover has exhibited a decreasing trend over the past five years, declining from 0.50 in 2019 to 0.43 in 2023. This indicates that the company is generating less revenue per dollar of assets invested, which may signify inefficiencies in asset utilization or a decrease in sales relative to its asset base. Further investigation into the company's operational efficiency and asset management practices may be warranted to address this declining trend in total asset turnover.
Peer comparison
Dec 31, 2023