Vertex Pharmaceuticals Inc (VRTX)

Return on total capital

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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands -232,900 -270,400 -348,600 4,192,500 3,832,000 3,877,000 3,965,600 4,045,500 4,307,400 4,151,600 4,079,400 2,935,200 2,782,100 2,809,311 2,514,538 3,391,079 3,174,949 2,961,237 2,286,724 1,790,058
Long-term debt US$ in thousands — — — — — — — — — — — — — — — — — — — —
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
Return on total capital -1.42% -1.73% -2.36% 22.61% 21.80% 23.48% 25.63% 28.03% 30.96% 31.86% 34.18% 26.91% 27.55% 29.48% 27.34% 37.76% 36.55% 36.41% 30.41% 27.70%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-232,900K ÷ ($—K + $16,409,600K)
= -1.42%

Vertex Pharmaceuticals Inc's return on total capital experienced fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio ranged from a high of 37.76% in March 31, 2021, to a low of -2.36% in June 30, 2024. Generally, the return on total capital exhibited a decreasing trend from the peak in March 31, 2021, with occasional fluctuations. It is important for the company to analyze the reasons behind the negative returns in 2024 and take appropriate actions to improve the efficiency of its capital utilization for sustainable growth and profitability.