Vertex Pharmaceuticals Inc (VRTX)

Pretax margin

		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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	248,500	259,600	214,700	4,767,400	4,379,800	4,309,000	4,306,200	4,169,100	4,232,400	4,026,500	3,932,900	2,864,300	2,730,400	2,748,123	2,411,194	3,280,164	3,116,798	2,905,125	2,229,920	1,732,288
Revenue (ttm)	US$ in thousands	10,984,000	10,582,900	10,283,600	10,120,000	9,803,200	9,596,700	9,444,700	9,144,300	8,863,500	8,628,770	8,277,080	7,873,370	7,499,400	7,066,960	6,622,470	6,355,190	6,147,530	5,935,020	5,347,582	4,763,428
Pretax margin		2.26%	2.45%	2.09%	47.11%	44.68%	44.90%	45.59%	45.59%	47.75%	46.66%	47.52%	36.38%	36.41%	38.89%	36.41%	51.61%	50.70%	48.95%	41.70%	36.37%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $248,500K ÷ $10,984,000K
= 2.26%

The pretax margin of Vertex Pharmaceuticals Inc has displayed fluctuations over the analyzed periods. It showed a steady increase from March 31, 2020, to December 31, 2020, reaching a peak of 50.70%.

However, from March 31, 2021, to June 30, 2021, the pretax margin experienced a decline to 36.41%. It then showed some recovery by September 30, 2021, at 38.89%.

The pretax margin fluctuated around the mid-thirties to high forties range from September 30, 2021, to March 31, 2024. There was a noticeable increase in the pretax margin for June 30, 2024, to 47.52%.

Unexpectedly, there was a drastic decline in the pretax margin for the latter part of 2024, dropping to 2.26% by December 31, 2024. This significant drop may require further investigation to understand the factors leading to such a sharp decrease in profitability.