Vertex Pharmaceuticals Inc (VRTX)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -232,900 | 3,832,000 | 4,307,400 | 2,782,100 | 3,175,050 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 16,409,600 | 17,580,400 | 13,912,700 | 10,100,000 | 8,686,800 |
| Return on total capital | -1.42% | 21.80% | 30.96% | 27.55% | 36.55% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-232,900K ÷ ($—K + $16,409,600K)
= -1.42%
Vertex Pharmaceuticals Inc's return on total capital has shown fluctuations over the period from December 31, 2020, to December 31, 2024.
- The return on total capital was 36.55% as of December 31, 2020, indicating the company was generating $0.3655 in profit for every dollar of total capital invested.
- By December 31, 2021, the return on total capital decreased to 27.55%, still a respectable return but lower than the previous year.
- The return on total capital increased to 30.96% by December 31, 2022, showing an improvement in the company's ability to generate profit from its total capital.
- However, by December 31, 2023, the return on total capital declined significantly to 21.80%, suggesting a lower efficiency in utilizing total capital to generate profits.
- The return on total capital turned negative, reaching -1.42% by December 31, 2024, indicating that the company was experiencing a loss in profitability concerning its total capital investment.
Overall, Vertex Pharmaceuticals Inc's return on total capital has demonstrated both positive and negative trends, with notable fluctuations over the period analyzed. Tracking this metric can help assess the company's overall efficiency in generating profits relative to the total capital employed.
Peer comparison
Dec 31, 2024