Vertex Pharmaceuticals Inc (VRTX)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	-535,600	-479,800	-489,900	4,019,400	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
Total stockholders’ equity	US$ in thousands	16,409,600	15,630,900	14,774,700	18,546,600	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
ROE		-3.26%	-3.07%	-3.32%	21.67%	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%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-535,600K ÷ $16,409,600K
= -3.26%

Vertex Pharmaceuticals Inc's return on equity (ROE) has exhibited varying performance over the past few years. From March 31, 2020, to June 30, 2021, the ROE increased steadily from 23.38% to 27.67% before reaching its peak at 33.08% on September 30, 2020. However, there was a decline in ROE to 21.66% by June 30, 2021.

Subsequently, there were fluctuations in ROE ranging from 21.01% to 26.77% from September 30, 2021, to June 30, 2022. However, a notable decline was observed in the latter part of 2024, with ROE turning negative at -3.32% by June 30, 2024 and continuing in the negative territory at -3.07% by September 30, 2024, and further decreasing to -3.26% by December 31, 2024.

This declining trend in ROE in the latter part of 2024 raises concerns about the company's profitability and efficiency in generating returns for its shareholders. Further analysis is necessary to understand the factors contributing to this significant downturn in ROE and to assess the company's financial health and performance outlook.