Vertex Pharmaceuticals Inc (VRTX)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 75.08% | 76.41% | 76.53% | 76.78% | 76.58% | 76.49% | 76.72% | 76.21% | 76.05% | 76.56% | 75.95% | 75.67% | 75.49% | 75.20% | 73.72% | 72.27% | 70.32% | 68.06% | 68.18% | 67.92% |
| Operating profit margin | 39.09% | 40.40% | 41.99% | 44.24% | 48.60% | 48.11% | 49.29% | 37.28% | 37.10% | 37.50% | 34.25% | 47.58% | 46.46% | 44.85% | 39.07% | 34.45% | 29.17% | 21.63% | 25.76% | 24.23% |
| Pretax margin | 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% | 33.97% | 21.69% | 24.65% | 22.67% |
| Net profit margin | 36.92% | 36.16% | 35.63% | 35.65% | 37.48% | 37.93% | 38.60% | 31.13% | 31.23% | 30.79% | 30.08% | 43.46% | 44.11% | 45.34% | 38.91% | 31.72% | 28.66% | 59.94% | 64.84% | 66.68% |
Vertex Pharmaceuticals, Inc. has demonstrated consistently high levels of profitability, with strong gross profit margins averaging around 88% over the past eight quarters. The operating profit margin has shown some variability but generally remains above 43%, indicating effective cost management and operational efficiency. The pretax margin has been relatively stable, with an average of about 45%, reflecting the company's ability to generate profits before accounting for taxes.
The net profit margin, representing the bottom line profitability, has shown some fluctuations but has remained healthy, averaging around 36% over the quarters analyzed. This indicates that Vertex Pharmaceuticals is efficient in managing its operating expenses and generating profits after accounting for all costs, including interest and taxes. Overall, Vertex Pharmaceuticals has maintained strong profitability ratios, which is generally a positive indicator of the company's financial health and operational performance.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 15.92% | 15.97% | 16.54% | 17.18% | 18.30% | 19.59% | 20.50% | 17.19% | 17.44% | 17.25% | 16.30% | 22.80% | 23.07% | 23.81% | 20.37% | 16.99% | 14.15% | 28.53% | 31.50% | 32.94% |
| Return on total capital | 21.80% | 23.48% | 25.63% | 28.03% | 30.96% | 31.86% | 34.18% | 26.91% | 27.55% | 29.48% | 27.34% | 37.76% | 36.55% | 36.41% | 30.41% | 27.70% | 23.88% | 15.97% | 17.93% | 17.00% |
| Return on equity (ROE) | 20.59% | 21.01% | 21.75% | 22.59% | 23.88% | 25.12% | 26.77% | 22.47% | 23.19% | 22.83% | 21.66% | 30.76% | 31.22% | 33.08% | 27.67% | 23.38% | 19.34% | 40.81% | 43.70% | 45.63% |
Vertex Pharmaceuticals, Inc. has shown a declining trend in its profitability ratios over the past eight quarters. The operating return on assets (Operating ROA) decreased from 24.05% in Q4 2022 to 18.95% in Q4 2023. Similarly, the return on assets (ROA) declined from 18.30% in Q4 2022 to 15.92% in Q4 2023. The return on total capital and return on equity (ROE) also exhibited a downward trajectory during the same period.
Despite the decreasing trend, Vertex Pharmaceuticals, Inc. has maintained relatively high levels of profitability, with Operating ROA ranging from 18.95% to 26.21%, ROA ranging from 15.92% to 17.18%, return on total capital ranging from 23.92% to 32.89%, and ROE ranging from 20.59% to 26.77%.
The declining profitability ratios may indicate potential challenges in generating returns from its assets and capital, which could be attributed to various factors such as competitive pressures, operational inefficiencies, or changes in the regulatory environment. The company may need to focus on optimizing its asset utilization and capital structure to improve profitability in the future.
See also:
Vertex Pharmaceuticals Inc Profitability Ratios (Quarterly Data)