Vertex Pharmaceuticals Inc (VRTX)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 22,533,200 | 22,730,200 | 18,150,900 | 13,432,500 | 11,751,800 |
| Operating ROA | -1.03% | 16.86% | 23.73% | 20.71% | 24.31% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $-232,900K ÷ $22,533,200K
= -1.03%
Vertex Pharmaceuticals Inc's operating return on assets (Operating ROA) fluctuated over the period from December 31, 2020, to December 31, 2024. The company's Operating ROA was 24.31% in 2020, indicating that for every dollar of assets, the company generated $0.2431 in operating income.
In 2021, the Operating ROA decreased to 20.71%, suggesting a slight decline in the company's operating efficiency in utilizing its assets to generate operating income. However, in 2022, Vertex Pharmaceuticals Inc's Operating ROA improved to 23.73%, showing a positive trend in asset utilization.
The Operating ROA then decreased significantly in 2023 to 16.86%, signaling a potential decrease in operating efficiency or profitability compared to previous years. Notably, in 2024, the Operating ROA turned negative at -1.03%, indicating that the company's operating income was lower than the assets employed in the operations, which could raise concerns about the company's efficiency in generating profits from assets.
Overall, the trend in Vertex Pharmaceuticals Inc's Operating ROA shows fluctuations over the period, with a general increase from 2020 to 2022, followed by a notable decrease in 2023 and a negative value in 2024. Further analysis of the company's operations and asset management may be required to understand the reasons behind these variations in Operating ROA.
Peer comparison
Dec 31, 2024