Vertex Pharmaceuticals Inc (VRTX)

Net profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	-535,600	3,619,600	3,322,000	2,342,100	2,711,700
Revenue	US$ in thousands	10,994,400	9,803,200	8,863,500	7,499,400	6,135,450
Net profit margin		-4.87%	36.92%	37.48%	31.23%	44.20%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $-535,600K ÷ $10,994,400K
= -4.87%

The net profit margin of Vertex Pharmaceuticals Inc has shown some fluctuations over the past five years. In December 2020, the net profit margin was strong at 44.20%, indicating that the company was able to convert 44.20% of its revenue into profit. However, by December 2021, the net profit margin dropped to 31.23%, suggesting a decrease in profitability compared to the previous year.

In December 2022, there was an improvement in the net profit margin to 37.48%, indicating that the company was able to enhance its profitability. The trend continued in December 2023, with a slight decrease to 36.92%, still maintaining a relatively healthy level of profitability.

However, by December 2024, there was a significant decline in the net profit margin to -4.87%, which implies that Vertex Pharmaceuticals Inc incurred a loss during that period. This sharp drop may raise concerns about the company's financial performance and operational efficiency in that particular year.

Overall, while Vertex Pharmaceuticals Inc has demonstrated strong profitability in some years, the negative net profit margin in December 2024 highlights the importance of closely monitoring and analyzing financial ratios to assess the company's financial health and performance over time.