Stock Analysis on Net
Stock Analysis on Net

Vertex Pharmaceuticals Inc. (NASDAQ:VRTX)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Vertex Pharmaceuticals Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Sep 30, 2024 -3.07% = -2.16% × 1.42
Jun 30, 2024 -3.32% = -2.43% × 1.36
Mar 31, 2024 21.67% = 16.81% × 1.29
Dec 31, 2023 20.59% = 15.92% × 1.29
Sep 30, 2023 21.01% = 15.97% × 1.32
Jun 30, 2023 21.75% = 16.54% × 1.32
Mar 31, 2023 22.59% = 17.18% × 1.31
Dec 31, 2022 23.88% = 18.30% × 1.30
Sep 30, 2022 25.12% = 19.59% × 1.28
Jun 30, 2022 26.77% = 20.50% × 1.31
Mar 31, 2022 22.47% = 17.19% × 1.31
Dec 31, 2021 23.19% = 17.44% × 1.33
Sep 30, 2021 22.83% = 17.25% × 1.32
Jun 30, 2021 21.66% = 16.30% × 1.33
Mar 31, 2021 30.76% = 22.80% × 1.35
Dec 31, 2020 31.22% = 23.07% × 1.35
Sep 30, 2020 33.08% = 23.81% × 1.39
Jun 30, 2020 27.67% = 20.37% × 1.36
Mar 31, 2020 23.38% = 16.99% × 1.38
Dec 31, 2019 19.34% = 14.15% × 1.37
Sep 30, 2019 — = — × 1.43
Jun 30, 2019 — = — × 1.39
Mar 31, 2019 — = — × 1.39

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

Three-Component Disaggregation of ROE

Vertex Pharmaceuticals Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Sep 30, 2024 -3.07% = -4.52% × 0.48 × 1.42
Jun 30, 2024 -3.32% = -4.74% × 0.51 × 1.36
Mar 31, 2024 21.67% = 39.46% × 0.43 × 1.29
Dec 31, 2023 20.59% = 36.68% × 0.43 × 1.29
Sep 30, 2023 21.01% = 35.94% × 0.44 × 1.32
Jun 30, 2023 21.75% = 35.40% × 0.47 × 1.32
Mar 31, 2023 22.59% = 35.40% × 0.49 × 1.31
Dec 31, 2022 23.88% = 37.20% × 0.49 × 1.30
Sep 30, 2022 25.12% = 37.62% × 0.52 × 1.28
Jun 30, 2022 26.77% = 38.26% × 0.54 × 1.31
Mar 31, 2022 22.47% = 30.84% × 0.56 × 1.31
Dec 31, 2021 23.19% = 30.92% × 0.56 × 1.33
Sep 30, 2021 22.83% = 30.52% × 0.57 × 1.32
Jun 30, 2021 21.66% = 29.80% × 0.55 × 1.33
Mar 31, 2021 30.76% = 43.06% × 0.53 × 1.35
Dec 31, 2020 31.22% = 43.70% × 0.53 × 1.35
Sep 30, 2020 33.08% = 44.91% × 0.53 × 1.39
Jun 30, 2020 27.67% = 38.51% × 0.53 × 1.36
Mar 31, 2020 23.38% = 31.35% × 0.54 × 1.38
Dec 31, 2019 19.34% = 28.27% × 0.50 × 1.37
Sep 30, 2019 — = — × — × 1.43
Jun 30, 2019 — = — × — × 1.39
Mar 31, 2019 — = — × — × 1.39

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

Five-Component Disaggregation of ROE

Vertex Pharmaceuticals Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Sep 30, 2024 -3.07% = -1.85 × 0.87 × 2.80% × 0.48 × 1.42
Jun 30, 2024 -3.32% = -2.28 × 0.84 × 2.48% × 0.51 × 1.36
Mar 31, 2024 21.67% = 0.84 × 0.99 × 47.23% × 0.43 × 1.29
Dec 31, 2023 20.59% = 0.83 × 0.99 × 44.83% × 0.43 × 1.29
Sep 30, 2023 21.01% = 0.81 × 0.99 × 45.10% × 0.44 × 1.32
Jun 30, 2023 21.75% = 0.78 × 0.99 × 45.81% × 0.47 × 1.32
Mar 31, 2023 22.59% = 0.78 × 0.99 × 45.83% × 0.49 × 1.31
Dec 31, 2022 23.88% = 0.78 × 0.99 × 48.01% × 0.49 × 1.30
Sep 30, 2022 25.12% = 0.81 × 0.99 × 46.95% × 0.52 × 1.28
Jun 30, 2022 26.77% = 0.81 × 0.99 × 47.81% × 0.54 × 1.31
Mar 31, 2022 22.47% = 0.86 × 0.98 × 36.80% × 0.56 × 1.31
Dec 31, 2021 23.19% = 0.86 × 0.98 × 36.86% × 0.56 × 1.33
Sep 30, 2021 22.83% = 0.79 × 0.98 × 39.42% × 0.57 × 1.32
Jun 30, 2021 21.66% = 0.83 × 0.98 × 36.99% × 0.55 × 1.33
Mar 31, 2021 30.76% = 0.84 × 0.98 × 52.07% × 0.53 × 1.35
Dec 31, 2020 31.22% = 0.87 × 0.98 × 51.16% × 0.53 × 1.35
Sep 30, 2020 33.08% = 0.93 × 0.98 × 49.43% × 0.53 × 1.39
Jun 30, 2020 27.67% = 0.93 × 0.98 × 42.33% × 0.53 × 1.36
Mar 31, 2020 23.38% = 0.87 × 0.97 × 37.14% × 0.54 × 1.38
Dec 31, 2019 19.34% = 0.84 × 0.96 × 34.91% × 0.50 × 1.37
Sep 30, 2019 — = — × — × — × — × 1.43
Jun 30, 2019 — = — × — × — × — × 1.39
Mar 31, 2019 — = — × — × — × — × 1.39

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

Two-Component Disaggregation of ROA

Vertex Pharmaceuticals Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Sep 30, 2024 -2.16% = -4.52% × 0.48
Jun 30, 2024 -2.43% = -4.74% × 0.51
Mar 31, 2024 16.81% = 39.46% × 0.43
Dec 31, 2023 15.92% = 36.68% × 0.43
Sep 30, 2023 15.97% = 35.94% × 0.44
Jun 30, 2023 16.54% = 35.40% × 0.47
Mar 31, 2023 17.18% = 35.40% × 0.49
Dec 31, 2022 18.30% = 37.20% × 0.49
Sep 30, 2022 19.59% = 37.62% × 0.52
Jun 30, 2022 20.50% = 38.26% × 0.54
Mar 31, 2022 17.19% = 30.84% × 0.56
Dec 31, 2021 17.44% = 30.92% × 0.56
Sep 30, 2021 17.25% = 30.52% × 0.57
Jun 30, 2021 16.30% = 29.80% × 0.55
Mar 31, 2021 22.80% = 43.06% × 0.53
Dec 31, 2020 23.07% = 43.70% × 0.53
Sep 30, 2020 23.81% = 44.91% × 0.53
Jun 30, 2020 20.37% = 38.51% × 0.53
Mar 31, 2020 16.99% = 31.35% × 0.54
Dec 31, 2019 14.15% = 28.27% × 0.50
Sep 30, 2019 — = — × —
Jun 30, 2019 — = — × —
Mar 31, 2019 — = — × —

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

Four-Component Disaggregation of ROA

Vertex Pharmaceuticals Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Sep 30, 2024 -2.16% = -1.85 × 0.87 × 2.80% × 0.48
Jun 30, 2024 -2.43% = -2.28 × 0.84 × 2.48% × 0.51
Mar 31, 2024 16.81% = 0.84 × 0.99 × 47.23% × 0.43
Dec 31, 2023 15.92% = 0.83 × 0.99 × 44.83% × 0.43
Sep 30, 2023 15.97% = 0.81 × 0.99 × 45.10% × 0.44
Jun 30, 2023 16.54% = 0.78 × 0.99 × 45.81% × 0.47
Mar 31, 2023 17.18% = 0.78 × 0.99 × 45.83% × 0.49
Dec 31, 2022 18.30% = 0.78 × 0.99 × 48.01% × 0.49
Sep 30, 2022 19.59% = 0.81 × 0.99 × 46.95% × 0.52
Jun 30, 2022 20.50% = 0.81 × 0.99 × 47.81% × 0.54
Mar 31, 2022 17.19% = 0.86 × 0.98 × 36.80% × 0.56
Dec 31, 2021 17.44% = 0.86 × 0.98 × 36.86% × 0.56
Sep 30, 2021 17.25% = 0.79 × 0.98 × 39.42% × 0.57
Jun 30, 2021 16.30% = 0.83 × 0.98 × 36.99% × 0.55
Mar 31, 2021 22.80% = 0.84 × 0.98 × 52.07% × 0.53
Dec 31, 2020 23.07% = 0.87 × 0.98 × 51.16% × 0.53
Sep 30, 2020 23.81% = 0.93 × 0.98 × 49.43% × 0.53
Jun 30, 2020 20.37% = 0.93 × 0.98 × 42.33% × 0.53
Mar 31, 2020 16.99% = 0.87 × 0.97 × 37.14% × 0.54
Dec 31, 2019 14.15% = 0.84 × 0.96 × 34.91% × 0.50
Sep 30, 2019 — = — × — × — × —
Jun 30, 2019 — = — × — × — × —
Mar 31, 2019 — = — × — × — × —

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

Disaggregation of Net Profit Margin

Vertex Pharmaceuticals Inc., decomposition of net profit margin ratio (quarterly data)

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Sep 30, 2024 -4.52% = -1.85 × 0.87 × 2.80%
Jun 30, 2024 -4.74% = -2.28 × 0.84 × 2.48%
Mar 31, 2024 39.46% = 0.84 × 0.99 × 47.23%
Dec 31, 2023 36.68% = 0.83 × 0.99 × 44.83%
Sep 30, 2023 35.94% = 0.81 × 0.99 × 45.10%
Jun 30, 2023 35.40% = 0.78 × 0.99 × 45.81%
Mar 31, 2023 35.40% = 0.78 × 0.99 × 45.83%
Dec 31, 2022 37.20% = 0.78 × 0.99 × 48.01%
Sep 30, 2022 37.62% = 0.81 × 0.99 × 46.95%
Jun 30, 2022 38.26% = 0.81 × 0.99 × 47.81%
Mar 31, 2022 30.84% = 0.86 × 0.98 × 36.80%
Dec 31, 2021 30.92% = 0.86 × 0.98 × 36.86%
Sep 30, 2021 30.52% = 0.79 × 0.98 × 39.42%
Jun 30, 2021 29.80% = 0.83 × 0.98 × 36.99%
Mar 31, 2021 43.06% = 0.84 × 0.98 × 52.07%
Dec 31, 2020 43.70% = 0.87 × 0.98 × 51.16%
Sep 30, 2020 44.91% = 0.93 × 0.98 × 49.43%
Jun 30, 2020 38.51% = 0.93 × 0.98 × 42.33%
Mar 31, 2020 31.35% = 0.87 × 0.97 × 37.14%
Dec 31, 2019 28.27% = 0.84 × 0.96 × 34.91%
Sep 30, 2019 — = — × — × —
Jun 30, 2019 — = — × — × —
Mar 31, 2019 — = — × — × —

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).