Vertex Pharmaceuticals Inc (VRTX)

Net profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	3,619,600	3,322,000	2,342,100	2,711,700	1,176,800
Revenue	US$ in thousands	9,803,200	8,863,500	7,499,400	6,135,450	4,105,510
Net profit margin		36.92%	37.48%	31.23%	44.20%	28.66%

December 31, 2023 calculation

Net profit margin = Net income ÷ Revenue
= $3,619,600K ÷ $9,803,200K
= 36.92%

Vertex Pharmaceuticals, Inc.'s net profit margin has shown fluctuating trends over the past five years. In 2023, the net profit margin decreased to 36.68% from 37.20% in 2022. This indicates that the company generated $0.367 in profit for every $1 of revenue in 2023. While the margin decreased compared to the previous year, it remains relatively high.

Comparing the net profit margin to 2021, there was an increase from 30.92% to 36.68% in 2023. This suggests that Vertex Pharmaceuticals improved its profitability in 2023 compared to 2021. However, the net profit margin was lower in 2023 compared to 2020 when it stood at 43.70%. This indicates a decrease in profitability over the past years.

In 2019, the net profit margin was 28.27%, lower than the margins reported in subsequent years. Overall, while the net profit margin has fluctuated, Vertex Pharmaceuticals has demonstrated the ability to generate significant profits relative to its revenue in recent years.