Vertex Pharmaceuticals Inc (VRTX)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	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	8,318,460	7,514,550	7,033,470	6,543,110
Operating ROA		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%	14.40%	10.30%	12.51%	11.97%

December 31, 2023 calculation

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

Over the past eight quarters, Vertex Pharmaceuticals, Inc.'s operating return on assets (ROA) has exhibited a general declining trend. Starting at 20.54% in Q1 2022, the operating ROA decreased to 18.95% in Q4 2023. This indicates a reduction in efficiency in generating operating income relative to total assets employed by the company. Despite fluctuations quarter over quarter, the downward trajectory suggests potential challenges in optimizing asset utilization and operational performance within Vertex Pharmaceuticals, Inc. The company may need to focus on strategic initiatives to enhance its operational efficiency and profitability to reverse this trend.