Vertex Pharmaceuticals Inc (VRTX)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Operating income (ttm)	US$ in thousands	-232,900	-270,400	-348,600	4,192,500	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
Total assets	US$ in thousands	22,533,200	22,240,200	20,132,100	23,917,400	22,730,200	21,726,200	20,349,200	18,974,200	18,150,900	16,706,400	15,582,200	14,256,100	13,432,500	12,618,700	12,221,700	12,115,100	11,751,800	11,301,600	10,216,400	8,893,200
Operating ROA		-1.03%	-1.22%	-1.73%	17.53%	16.86%	17.84%	19.49%	21.32%	23.73%	24.85%	26.18%	20.59%	20.71%	21.00%	18.56%	24.96%	24.31%	23.55%	20.45%	18.45%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $-232,900K ÷ $22,533,200K
= -1.03%

Operating return on assets (ROA) is a key financial ratio that measures a company's efficiency in generating operating profits from its assets. For Vertex Pharmaceuticals Inc, the operating ROA has shown fluctuations over the period from March 31, 2020, to December 31, 2024.

The trend in Vertex Pharmaceuticals Inc's operating ROA indicates a generally positive performance, with the ratio increasing from 18.45% in March 2020 to a peak of 26.18% in June 2022. This upward trend indicates that the company was able to generate more operating income relative to its total assets during this period.

However, starting from June 30, 2022, the operating ROA began to decline steadily, reaching negative values by the end of December 31, 2024. Negative values for the operating ROA suggest that the company's operating income was insufficient to cover its assets, which is a cause for concern as it may indicate operational inefficiencies or financial challenges.

In conclusion, Vertex Pharmaceuticals Inc's operating ROA exhibited a mixed performance over the analyzed period, with an initial positive trend followed by a significant decline in recent quarters. It may be crucial for the company to address the declining trend and work towards improving its operational efficiency to enhance its profitability in the future.