Vertex Pharmaceuticals Inc (VRTX)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	22,730,200	18,150,900	13,432,500	11,751,800	8,318,460
Operating ROA		16.86%	23.73%	20.71%	24.31%	14.40%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $3,832,000K ÷ $22,730,200K
= 16.86%

Vertex Pharmaceuticals, Inc.'s operating return on assets (operating ROA) has exhibited fluctuations over the past five years. In 2023, the operating ROA stood at 18.95%, showing a decrease compared to the previous year. Despite this decline, the company's operating ROA remains relatively strong, indicating that it generated $0.1895 in operating income for every dollar of assets employed in 2023.

Looking at the trend from 2019 to 2023, we observe an overall positive trajectory, with the metric experiencing an upward trend, peaking in 2022 at 24.05%. This suggests that Vertex Pharmaceuticals was more effective in generating operating income from its assets in the earlier years of the period under consideration. However, the slight drop in 2023 may indicate a lower efficiency in utilizing assets to generate operating profits compared to the peak year of 2022.

It is essential for Vertex Pharmaceuticals to continue monitoring and analyzing its operating ROA to ensure efficient management of its assets and strive for sustainable profitability in the future.