Vertex Pharmaceuticals Inc (VRTX)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	-535,600	3,619,600	3,322,000	2,342,100	2,711,700
Total assets	US$ in thousands	22,533,200	22,730,200	18,150,900	13,432,500	11,751,800
ROA		-2.38%	15.92%	18.30%	17.44%	23.07%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $-535,600K ÷ $22,533,200K
= -2.38%

Based on the provided data, Vertex Pharmaceuticals Inc's return on assets (ROA) has exhibited fluctuations over the past five years.

In December 31, 2020, the company's ROA was 23.07%, indicating that for every dollar in assets, Vertex generated a profit of 23.07 cents. However, the ROA decreased to 17.44% by December 31, 2021, before rebounding slightly to 18.30% by December 31, 2022.

By December 31, 2023, the ROA declined further to 15.92%, indicating a decrease in profitability relative to its assets. Notably, by December 31, 2024, Vertex experienced a negative ROA of -2.38%, signifying that the company incurred a loss on its assets during this period.

Overall, while Vertex Pharmaceuticals Inc's ROA has shown variability, the negative ROA in 2024 may raise concerns about the company's asset management efficiency and profitability. Further analysis of the reasons behind this significant decline in ROA would be necessary to assess the company's financial performance accurately.