Operating Profit Margin
since 2005
Calculation
Vertex Pharmaceuticals Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Income (loss) from operations1 | ÷ | Revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | -2.11% | = | 100 | × | (232,900) | ÷ | 11,020,100) |
| Dec 31, 2023 | 38.83% | = | 100 | × | 3,832,000) | ÷ | 9,869,200) |
| Dec 31, 2022 | 48.23% | = | 100 | × | 4,307,400) | ÷ | 8,930,700) |
| Dec 31, 2021 | 36.73% | = | 100 | × | 2,782,100) | ÷ | 7,574,400) |
| Dec 31, 2020 | 46.03% | = | 100 | × | 2,856,290) | ÷ | 6,205,683) |
| Dec 31, 2019 | 28.77% | = | 100 | × | 1,197,566) | ÷ | 4,162,821) |
| Dec 31, 2018 | 20.84% | = | 100 | × | 635,150) | ÷ | 3,047,597) |
| Dec 31, 2017 | 4.95% | = | 100 | × | 123,243) | ÷ | 2,488,652) |
| Dec 31, 2016 | 0.58% | = | 100 | × | 9,936) | ÷ | 1,702,177) |
| Dec 31, 2015 | -45.23% | = | 100 | × | (466,879) | ÷ | 1,032,336) |
| Dec 31, 2014 | -119.30% | = | 100 | × | (692,412) | ÷ | 580,415) |
| Dec 31, 2013 | -74.54% | = | 100 | × | (903,448) | ÷ | 1,211,975) |
| Dec 31, 2012 | 0.15% | = | 100 | × | 2,332) | ÷ | 1,527,042) |
| Dec 31, 2011 | 8.07% | = | 100 | × | 113,820) | ÷ | 1,410,626) |
| Dec 31, 2010 | -485.51% | = | 100 | × | (696,077) | ÷ | 143,370) |
| Dec 31, 2009 | -602.63% | = | 100 | × | (614,012) | ÷ | 101,889) |
| Dec 31, 2008 | -263.65% | = | 100 | × | (462,708) | ÷ | 175,504) |
| Dec 31, 2007 | -210.94% | = | 100 | × | (419,792) | ÷ | 199,012) |
| Dec 31, 2006 | -105.86% | = | 100 | × | (229,038) | ÷ | 216,356) |
| Dec 31, 2005 | -93.15% | = | 100 | × | (149,872) | ÷ | 160,890) |
Based on: 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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in thousands
The financial data reveals notable fluctuations in the company's operating performance and revenue generation over the analyzed period. Initially, the company experienced significant operating losses from 2005 through 2010, with the magnitude of losses generally increasing, reaching a peak loss in 2010. Revenues during this same initial period showed an overall upward trend but remained relatively modest compared to later years.
Starting in 2011, there is a marked turning point where the company transitioned from consistent operating losses to achieving positive income from operations. The operating income improved substantially, with some years such as 2015 through 2020 showing robust growth in operating income, peaking significantly in 2020. This positive trend in operating income is accompanied by corresponding increases in revenues, which surged dramatically from approximately $1.4 billion in 2011 to over $6.2 billion in 2020, indicating strong revenue growth driving improved profitability.
Operating profit margins mirror the trend in operating income, initially showing deeply negative margins through 2010, reflecting inefficiency or high costs relative to revenue. From 2011 onwards, margins transitioned into positive territory, reaching double-digit percentages and peaking near 46% in 2020. This sustained improvement suggests enhanced operational efficiency and a favorable cost structure during the period of revenue expansion.
In the most recent years, specifically 2021 and 2022, operating income remains high, though with some volatility, and the operating profit margin remains strong, albeit with a slight decrease from the peak in 2020. Revenues continue to grow, reaching nearly $9.9 billion by the end of 2023. However, a notable decline in operating income and a negative profit margin are observed for 2024, indicating potential challenges or one-time impacts leading to an operating loss despite the highest recorded revenues in the period.
- Income (loss) from operations
- From persistent and increasing operating losses through 2010, the company shifted to profitability from 2011 onwards, with a peak operating income in 2020 followed by a sharp decline into operating loss in 2024.
- Revenues
- Demonstrated steady growth throughout the decade, with a significant acceleration from 2011 forward, rising from about $1.4 billion to over $11 billion by 2024, despite some fluctuations.
- Operating profit margin
- Reflecting the profitability trends, margins improved dramatically after 2010, turning positive and reaching strong double-digit levels by 2020, but deteriorated sharply into negative territory in 2024.
Overall, the data portrays a company that overcame early operational challenges to achieve substantial revenue and profitability growth, suggesting successful strategic or market developments during the middle part of the timeline. The substantial deterioration in operating results in the final year, despite record revenues, indicates emerging issues that may warrant further investigation.
Comparison to Competitors
Vertex Pharmaceuticals Inc., operating profit margin, long-term trends, comparison to competitors
| Vertex Pharmaceuticals Inc. | AbbVie Inc. | Amgen Inc. | Danaher Corp. | Gilead Sciences Inc. | Regeneron Pharmaceuticals Inc. | Thermo Fisher Scientific Inc. | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | -2.11% | 16.22% | 22.66% | 20.37% | 5.81% | 28.10% | 17.11% |
| Dec 31, 2023 | 38.83% | 23.49% | 29.35% | 21.77% | 28.24% | 30.85% | 16.00% |
| Dec 31, 2022 | 48.23% | 31.21% | 38.57% | 27.61% | 27.17% | 38.93% | 18.69% |
| Dec 31, 2021 | 36.73% | 31.89% | 31.44% | 25.35% | 36.72% | 55.67% | 25.57% |
| Dec 31, 2020 | 46.03% | 24.81% | 37.70% | 18.99% | 16.72% | 42.09% | 24.19% |
| Dec 31, 2019 | 28.77% | 39.03% | 43.57% | 18.25% | 19.38% | 28.10% | 17.99% |
| Dec 31, 2018 | 20.84% | 19.49% | 45.55% | 17.11% | 37.83% | 37.77% | 15.53% |
| Dec 31, 2017 | 4.95% | 33.99% | 45.76% | 16.48% | 55.04% | 35.41% | 14.19% |
| Dec 31, 2016 | 0.58% | 36.60% | 44.74% | 16.29% | 58.87% | 27.38% | 13.40% |
| Dec 31, 2015 | -45.23% | 32.97% | 40.44% | 16.87% | 69.03% | 30.51% | 13.77% |
| Dec 31, 2014 | -119.30% | 17.09% | 32.03% | 17.23% | 62.37% | 29.74% | 14.82% |
| Dec 31, 2013 | -74.54% | 30.14% | 32.25% | 17.13% | 41.87% | 36.11% | 12.30% |
| Dec 31, 2012 | 0.15% | 31.65% | 33.52% | 17.33% | 42.67% | 33.20% | 11.85% |
| Dec 31, 2011 | 8.07% | — | 28.19% | 16.27% | 46.77% | -46.02% | 10.62% |
| Dec 31, 2010 | -485.51% | — | 37.82% | 16.41% | 53.62% | -21.23% | 11.72% |
| Dec 31, 2009 | -602.63% | — | 38.37% | 13.79% | 54.55% | -19.54% | 10.38% |
| Dec 31, 2008 | -263.65% | — | 35.50% | 14.72% | 52.68% | -37.67% | 11.71% |
| Dec 31, 2007 | -210.94% | — | 27.81% | 15.79% | 57.98% | -91.55% | 10.00% |
| Dec 31, 2006 | -105.86% | — | 27.71% | 15.82% | -29.32% | -169.68% | 6.38% |
| Dec 31, 2005 | -93.15% | — | 40.33% | 15.84% | 61.41% | -187.97% | 10.01% |
Based on: 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), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).