Vertex Pharmaceuticals Inc (VRTX)

Operating profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	-232,900	3,832,000	4,307,400	2,782,100	2,856,300
Revenue	US$ in thousands	10,994,400	9,803,200	8,863,500	7,499,400	6,135,450
Operating profit margin		-2.12%	39.09%	48.60%	37.10%	46.55%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $-232,900K ÷ $10,994,400K
= -2.12%

The operating profit margin of Vertex Pharmaceuticals Inc has shown fluctuations over the years, as reflected in the provided data. In 2020, the operating profit margin stood at a healthy 46.55%, indicating that the company was able to generate substantial profits from its core operations. However, there was a decline in profitability in 2021, with the operating profit margin dropping to 37.10%.

The year 2022 saw a significant improvement in the operating profit margin to 48.60%, signaling a potential rebound in profitability for the company. Subsequently, in 2023, the operating profit margin decreased to 39.09%, although it remained relatively healthy compared to the previous year.

Notably, there was a considerable downturn in 2024, where the operating profit margin fell to -2.12%, indicating that the company may have incurred operating losses during that period. This sharp decline raises concerns about the company's operational efficiency and financial performance in that particular year.

Overall, the fluctuating trend in Vertex Pharmaceuticals Inc's operating profit margin highlights the importance of monitoring and analyzing financial ratios to assess the company's profitability and operational effectiveness over time.