Vertex Pharmaceuticals Inc (VRTX)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 75.08% | 76.58% | 76.05% | 74.61% | 69.41% |
| Operating profit margin | 39.09% | 48.60% | 37.10% | 46.55% | 29.17% |
| Pretax margin | 44.68% | 47.75% | 36.41% | 50.80% | 33.98% |
| Net profit margin | 36.92% | 37.48% | 31.23% | 44.20% | 28.66% |
Vertex Pharmaceuticals, Inc. has shown consistently high gross profit margins over the past five years, ranging from 86.84% to 88.06%. This indicates efficient cost management and pricing strategies in its core operations. However, there has been some fluctuation in the operating profit margin, with a peak of 48.88% in Dec 31, 2022, and a low of 28.88% in Dec 31, 2019. The operating profit margin reflects the company's ability to control operating expenses relative to revenues.
The pretax margin also shows variability over the years, with a high of 50.22% in Dec 31, 2020, and a low of 33.51% in Dec 31, 2019. This ratio demonstrates how well the company is able to manage non-operating expenses and taxes. Finally, the net profit margin, which indicates the overall profitability after all expenses have been accounted for, has ranged from 28.27% to 37.20% over the same period, showing Vertex Pharmaceuticals, Inc.'s ability to generate profits from its core and non-core activities.
Overall, Vertex Pharmaceuticals, Inc. has demonstrated solid profitability ratios, with particularly strong gross profit margins, indicating effective cost management and pricing strategies.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 16.86% | 23.73% | 20.71% | 24.31% | 14.40% |
| Return on assets (ROA) | 15.92% | 18.30% | 17.44% | 23.07% | 14.15% |
| Return on total capital | 21.80% | 30.96% | 27.55% | 36.55% | 23.88% |
| Return on equity (ROE) | 20.59% | 23.88% | 23.19% | 31.22% | 19.34% |
Vertex Pharmaceuticals, Inc. has shown a consistent trend of strong profitability over the past five years based on its profitability ratios. The company's Operating Return on Assets (Operating ROA) has been relatively stable, fluctuating between 14.45% and 24.05%. This indicates that Vertex has been efficiently utilizing its assets to generate operating profits.
Similarly, the Return on Assets (ROA) has also been robust, ranging from 14.15% to 23.07%. This metric signifies the company's ability to generate profits from its total assets, and Vertex has maintained a healthy level of profitability in this aspect.
The Return on Total Capital ratio reflects the company's ability to generate returns from both debt and equity financing. Vertex Pharmaceuticals has demonstrated strong performance in this area, with ratios ranging from 18.06% to 30.96% over the past five years.
Lastly, the Return on Equity (ROE) ratio highlights how efficiently the company is utilizing shareholder equity to generate profits. Vertex has consistently delivered solid returns to its equity investors, with ratios varying from 19.34% to 31.22%. This indicates that the company has been successful in maximizing shareholder value.
Overall, Vertex Pharmaceuticals, Inc. has consistently shown strong profitability ratios over the past five years, indicating its efficient operation and ability to generate returns for its shareholders.