Statement of Comprehensive Income
Comprehensive income is the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.
Vertex Pharmaceuticals Inc., consolidated statement of comprehensive income
US$ in thousands
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The statement of comprehensive income exhibits significant fluctuations over the five-year period. Net income demonstrates a generally positive trend, with substantial growth from 2021 to 2023, a significant loss in 2024, and a recovery in 2025. Other comprehensive income components contribute volatility to the overall comprehensive income.
- Net Income
- Net income increased from US$2,342.1 million in 2021 to US$3,322.0 million in 2022, and further to US$3,619.6 million in 2023. A substantial loss of US$535.6 million was recorded in 2024, followed by a strong recovery to US$3,953.2 million in 2025. This indicates considerable earnings variability.
- Unrealized Holding Gains (Losses) on Available-for-Sale Debt Securities
- This component shows relatively small gains and losses initially, with a gain of US$9.7 million in 2023. The gains increased substantially to US$26.9 million in 2025, after a loss of US$2.5 million in 2024. These fluctuations, while not dominating the overall picture, suggest active management or changing market conditions affecting debt security valuations.
- Unrealized Gains (Losses) on Foreign Currency Forward Contracts
- This item is characterized by significant volatility. A substantial gain of US$83.2 million was recorded in 2021, followed by a smaller loss in 2022. Larger losses were observed in 2023 and 2025 (US$50.9 million and US$198.1 million respectively), while a significant gain of US$136.0 million occurred in 2024. This suggests substantial exposure to, and active hedging of, foreign currency risk.
- Foreign Currency Translation Adjustment
- The foreign currency translation adjustment exhibits fluctuations, with a gain of US$2.0 million in 2021, a loss of US$11.4 million in 2022, a gain of US$26.1 million in 2023, a smaller gain of US$8.6 million in 2024, and a gain of US$27.5 million in 2025. These changes likely reflect the impact of exchange rate movements on the consolidation of foreign subsidiaries.
- Other Comprehensive Income
- Other comprehensive income mirrors the volatility of its components. A gain of US$84.4 million was recorded in 2021, followed by losses in 2022 and 2023 (US$15.1 million each). A substantial gain of US$142.1 million was observed in 2024, followed by a loss of US$143.7 million in 2025. This demonstrates the significant impact of non-net income items on overall comprehensive income.
- Comprehensive Income
- Comprehensive income generally follows the trend of net income, increasing from US$2,426.5 million in 2021 to US$3,604.5 million in 2023. The loss in net income in 2024 resulted in a comprehensive loss of US$393.5 million. Comprehensive income recovered to US$3,809.5 million in 2025, driven by the recovery in net income and positive contributions from other comprehensive income components.
Overall, the statement of comprehensive income reveals a business subject to considerable earnings variability, particularly influenced by fluctuations in foreign currency related items and, notably, a significant downturn in 2024 followed by a strong recovery in 2025. The impact of other comprehensive income components is substantial and contributes to the overall volatility.
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