Vertex Pharmaceuticals Inc (VRTX)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 248,500 | 4,379,800 | 4,232,400 | 2,730,400 | 3,116,900 |
| Revenue | US$ in thousands | 10,994,400 | 9,803,200 | 8,863,500 | 7,499,400 | 6,135,450 |
| Pretax margin | 2.26% | 44.68% | 47.75% | 36.41% | 50.80% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $248,500K ÷ $10,994,400K
= 2.26%
Based on the data provided, Vertex Pharmaceuticals Inc's pretax margin has shown fluctuations over the years. In December 31, 2020, the pretax margin was at a high of 50.80%, indicating that the company was generating significant profits before accounting for taxes. However, in December 31, 2021, the pretax margin decreased to 36.41%, suggesting a decline in profitability.
The pretax margin then improved in December 31, 2022, reaching 47.75%, signaling a recovery in profitability. Subsequently, in December 31, 2023, the pretax margin was slightly lower at 44.68%, indicating stable profitability levels. However, there was a significant drop in profitability in December 31, 2024, with the pretax margin falling sharply to 2.26%.
The downward trend in the pretax margin from 2022 to 2024 may raise concerns about the company's operational efficiency and cost management. Further analysis and investigation into the reasons behind the fluctuating pretax margins are necessary to determine the underlying factors impacting Vertex Pharmaceuticals Inc's profitability.
Peer comparison
Dec 31, 2024