Stock Analysis on Net
Stock Analysis on Net

Vertex Pharmaceuticals Inc. (NASDAQ:VRTX)

This company has been moved to the archive! The financial data has not been updated since February 15, 2024.

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
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-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).

The primary reason for the decrease in return on equity ratio (ROE) over Q4 2023 is the decrease in financial leverage ratio.

Three-Component Disaggregation of ROE

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

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
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-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).

The primary reason for the decrease in return on equity ratio (ROE) over Q4 2023 is the decrease in efficiency measured by asset turnover ratio.

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
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-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).

The primary reason for the decrease in return on equity ratio (ROE) over Q4 2023 is the decrease in efficiency measured by asset turnover ratio.

Two-Component Disaggregation of ROA

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

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
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-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).

The primary reason for the decrease in return on assets ratio (ROA) over Q4 2023 is the decrease in asset turnover ratio.

Four-Component Disaggregation of ROA

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

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
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-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).

The primary reason for the decrease in return on assets ratio (ROA) over Q4 2023 is the decrease in efficiency measured by asset turnover ratio.

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
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-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).

The primary reason for the increase in net profit margin ratio over Q4 2023 is the increase in effect of taxes measured by tax burden ratio.