Vertex Pharmaceuticals Inc (VRTX)

Total asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	10,994,400	9,803,200	8,863,500	7,499,400	6,135,450
Total assets	US$ in thousands	22,533,200	22,730,200	18,150,900	13,432,500	11,751,800
Total asset turnover		0.49	0.43	0.49	0.56	0.52

December 31, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $10,994,400K ÷ $22,533,200K
= 0.49

Total asset turnover is a key financial ratio that measures a company's efficiency in generating revenue from its total assets. In the case of Vertex Pharmaceuticals Inc, the total asset turnover has fluctuated over the past five years.

As of December 31, 2020, the total asset turnover was 0.52, indicating that Vertex generated $0.52 in revenue for every $1 of total assets it had. This ratio increased to 0.56 by December 31, 2021, suggesting improved efficiency in utilizing assets to generate revenue.

However, there was a slight decline in total asset turnover to 0.49 by December 31, 2022, followed by a further decrease to 0.43 by December 31, 2023. These decreases may indicate challenges in effectively using assets to generate revenue during these years.

By December 31, 2024, the total asset turnover had increased back to 0.49. It's crucial for Vertex Pharmaceuticals to closely monitor and manage this ratio to ensure optimal utilization of assets and maximize revenue generation efficiency in the future.