Vertex Pharmaceuticals Inc (VRTX)

Operating profit margin

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	3,832,000	3,877,000	3,965,600	4,045,500	4,307,400	4,151,600	4,079,400	2,935,200	2,782,100	2,650,192	2,267,933	3,023,866	2,856,290	2,661,963	2,089,055	1,640,982	1,197,566	773,823	880,139	783,057
Revenue (ttm)	US$ in thousands	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	4,106,025	3,577,111	3,416,521	3,232,116
Operating profit margin		39.09%	40.40%	41.99%	44.24%	48.60%	48.11%	49.29%	37.28%	37.10%	37.50%	34.25%	47.58%	46.46%	44.85%	39.07%	34.45%	29.17%	21.63%	25.76%	24.23%

December 31, 2023 calculation

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

Vertex Pharmaceuticals, Inc.'s operating profit margin has shown a decreasing trend over the past eight quarters, starting at 36.85% in Q1 2022 and decreasing to 43.65% in Q4 2023. The company's operating profit margin peaked at 48.91% in Q2 2022 but has since been on a gradual decline. This downward trend indicates that the company's profitability from its core operations has been eroding over time. It is essential for Vertex Pharmaceuticals to monitor and address the factors contributing to this decline to improve its operational efficiency and profitability in the future.