Vertex Pharmaceuticals Inc (VRTX)

Gross profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Gross profit (ttm)	US$ in thousands	7,938,100	7,607,600	7,490,200	7,499,500	7,360,000	7,333,300	7,227,600	7,021,300	6,787,500	6,600,020	6,349,830	6,000,580	5,703,200	5,410,270	5,029,740	4,808,780	4,640,780	4,462,920	3,942,417	3,442,341
Revenue (ttm)	US$ in thousands	10,984,000	10,582,900	10,283,600	10,120,000	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
Gross profit margin		72.27%	71.89%	72.84%	74.11%	75.08%	76.41%	76.53%	76.78%	76.58%	76.49%	76.72%	76.21%	76.05%	76.56%	75.95%	75.67%	75.49%	75.20%	73.72%	72.27%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $7,938,100K ÷ $10,984,000K
= 72.27%

The gross profit margin of Vertex Pharmaceuticals Inc has shown a general upward trend from March 31, 2020, to September 30, 2021, gradually increasing from 72.27% to 76.56%. This trend indicates that the company was able to improve its efficiency in generating profits from its core business operations during this period.

Subsequently, the gross profit margin experienced slight fluctuations but remained relatively stable until June 30, 2022, where it reached its peak at 76.72%. However, from September 30, 2022, to December 31, 2023, the gross profit margin started declining steadily, dropping to 75.08% by the end of December 31, 2023.

From the beginning of March 31, 2024, the gross profit margin continued to decrease, reaching 72.84% by June 30, 2024, reflecting a significant decline in profitability. The trend continued to worsen as the gross profit margin further decreased to 71.89% by September 30, 2024, indicating potential challenges in managing costs or pricing strategies.

However, by the end of December 31, 2024, there was a slight improvement in the gross profit margin, which rose to 72.27%. Overall, the analysis of the gross profit margin of Vertex Pharmaceuticals Inc indicates fluctuations and challenges in maintaining profitability, requiring further examination of the company's operational efficiency and cost management strategies.