Vertex Pharmaceuticals Inc (VRTX)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	7,948,500	7,360,000	6,787,500	5,703,200	4,577,470
Revenue	US$ in thousands	10,994,400	9,803,200	8,863,500	7,499,400	6,135,450
Gross profit margin		72.30%	75.08%	76.58%	76.05%	74.61%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $7,948,500K ÷ $10,994,400K
= 72.30%

Based on the data provided, the gross profit margin of Vertex Pharmaceuticals Inc has displayed a generally positive trend over the last five years. In December 31, 2020, the gross profit margin stood at 74.61%, which increased to 76.05% by December 31, 2021. The trend continued to improve over the following years, reaching 76.58% by December 31, 2022.

However, there was a slight dip in the gross profit margin by December 31, 2023, as it decreased to 75.08%. This decrease could be attributed to various factors such as increasing costs of production or pricing pressures in the industry.

By December 31, 2024, the gross profit margin further declined to 72.30%. This significant decrease may warrant closer examination to identify the root causes and understand its potential impact on the company's overall profitability.

Overall, while the initial improvement in gross profit margin trend is positive, the recent declines indicate a potential need for Vertex Pharmaceuticals Inc to assess its cost structure and revenue generation strategies to maintain healthy profit margins in the future.