Vertex Pharmaceuticals Inc (VRTX)

Operating profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	3,832,000	4,307,400	2,782,100	2,856,300	1,197,500
Revenue	US$ in thousands	9,803,200	8,863,500	7,499,400	6,135,450	4,105,510
Operating profit margin		39.09%	48.60%	37.10%	46.55%	29.17%

December 31, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $3,832,000K ÷ $9,803,200K
= 39.09%

The operating profit margin of Vertex Pharmaceuticals, Inc. has exhibited fluctuations over the past five years. In 2023, the operating profit margin decreased to 43.65% from 48.88% in 2022, indicating a decline in profitability relative to revenue. This decrease follows a pattern of variability in the company's operating efficiency, as seen in the changing margins over the years. Despite the recent decrease, the operating profit margin in 2023 remains relatively high compared to 2021 and 2019. This indicates that Vertex Pharmaceuticals, Inc. has historically been able to generate a significant proportion of operating profit from its revenue, although the recent decline suggests a potential need for further analysis to understand the drivers behind the change.