Vertex Pharmaceuticals Inc (VRTX)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	3,619,600	3,322,000	2,342,100	2,711,700	1,176,800
Total stockholders’ equity	US$ in thousands	17,580,400	13,912,700	10,100,000	8,686,800	6,085,200
ROE		20.59%	23.88%	23.19%	31.22%	19.34%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $3,619,600K ÷ $17,580,400K
= 20.59%

Vertex Pharmaceuticals, Inc.'s return on equity (ROE) has displayed fluctuations over the past five years. In 2023, the ROE decreased to 20.59% from 23.88% in 2022, indicating a slight decline in the company's ability to generate profits from shareholders' equity. Despite this reduction, the ROE remains at a respectable level.

When compared to the prior years, the ROE in 2023 is lower than the 31.22% reported in 2020 but higher than the 19.34% in 2019. This suggests some variability in the company's efficiency in utilizing shareholder equity to generate returns. Overall, the trend in ROE for Vertex Pharmaceuticals, Inc. indicates a mix of strong and moderate performance over the past five years. Further analysis of the company's financial performance and underlying factors would be necessary to fully understand the changes in ROE.