Vertex Pharmaceuticals Inc (VRTX)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	3,619,600	3,469,700	3,364,900	3,259,700	3,322,000	3,273,200	3,194,600	2,451,100	2,342,100	2,176,190	1,991,724	2,761,994	2,711,647	2,690,691	2,080,775	1,510,932	1,176,810	2,144,106	2,215,334	2,155,267
Total stockholders’ equity	US$ in thousands	17,580,400	16,512,800	15,470,200	14,432,300	13,912,700	13,029,600	11,933,500	10,907,000	10,100,000	9,530,800	9,196,400	8,980,300	8,686,800	8,133,470	7,519,240	6,461,650	6,085,200	5,253,390	5,069,960	4,723,310
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%

December 31, 2023 calculation

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

Looking at the trend of Vertex Pharmaceuticals, Inc.'s return on equity (ROE) over the past eight quarters, there appears to be a gradual decline from 26.77% in Q2 2022 to 20.59% in Q4 2023. This downward trend could indicate potential challenges in efficiently utilizing shareholder equity to generate profits.

Despite the decline, Vertex Pharmaceuticals, Inc. has maintained ROE levels above 20% throughout the period, indicating a relatively strong performance in generating profits from shareholders' investments. However, the decreasing trend may suggest a need for the company to focus on improving its efficiency in utilizing equity to drive profitability.

It would be essential for Vertex Pharmaceuticals, Inc. to assess the factors contributing to the declining ROE and implement strategies to enhance profitability and shareholder value in the future. Monitoring and addressing these trends promptly can help the company sustain its competitive position and financial performance in the pharmaceutical industry.