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

Beginner level

Two-Component Disaggregation of ROE

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

Microsoft Excel LibreOffice Calc
ROE = ROA × Financial Leverage
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 40.81% = 28.53% × 1.43
Jun 30, 2019 43.70% = 31.50% × 1.39
Mar 31, 2019 45.63% = 32.94% × 1.39
Dec 31, 2018 47.28% = 33.57% × 1.41
Sep 30, 2018 22.27% = 14.00% × 1.59
Jun 30, 2018 15.46% = 9.58% × 1.61
Mar 31, 2018 9.41% = 5.72% × 1.65
Dec 31, 2017 12.99% = 7.43% × 1.75
Sep 30, 2017 10.93% = 6.12% × 1.79
Jun 30, 2017 15.55% = 7.91% × 1.97
Mar 31, 2017 11.82% = 6.02% × 1.96
Dec 31, 2016 -9.69% = -3.87% × 2.50
Sep 30, 2016 -21.41% = -8.38% × 2.55
Jun 30, 2016 -28.03% = -10.79% × 2.60
Mar 31, 2016 -41.73% = -16.05% × 2.60
Dec 31, 2015 -59.19% = -22.26% × 2.66
Sep 30, 2015 = × 2.64
Jun 30, 2015 = × 2.65
Mar 31, 2015 = × 2.22

Based on: 10-Q (filing date: 2020-10-30), 10-Q (filing date: 2020-07-31), 10-Q (filing date: 2020-05-01), 10-K (filing date: 2020-02-13), 10-Q (filing date: 2019-10-31), 10-Q (filing date: 2019-08-01), 10-Q (filing date: 2019-05-01), 10-K (filing date: 2019-02-13), 10-Q (filing date: 2018-10-25), 10-Q (filing date: 2018-07-26), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-15), 10-Q (filing date: 2017-10-30), 10-Q (filing date: 2017-07-28), 10-Q (filing date: 2017-04-28), 10-K (filing date: 2017-02-23), 10-Q (filing date: 2016-10-31), 10-Q (filing date: 2016-08-01), 10-Q (filing date: 2016-05-03), 10-K (filing date: 2016-02-16), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-08-04), 10-Q (filing date: 2015-05-04).

The primary reason for the increase in return on equity ratio (ROE) over Q3 2020 is the increase in profitability measured by return on assets ratio (ROA).


Three-Component Disaggregation of ROE

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

Microsoft Excel LibreOffice Calc
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
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 40.81% = 59.23% × 0.48 × 1.43
Jun 30, 2019 43.70% = 64.13% × 0.49 × 1.39
Mar 31, 2019 45.63% = 66.01% × 0.50 × 1.39
Dec 31, 2018 47.28% = 68.80% × 0.49 × 1.41
Sep 30, 2018 22.27% = 22.87% × 0.61 × 1.59
Jun 30, 2018 15.46% = 15.84% × 0.60 × 1.61
Mar 31, 2018 9.41% = 9.36% × 0.61 × 1.65
Dec 31, 2017 12.99% = 10.59% × 0.70 × 1.75
Sep 30, 2017 10.93% = 8.53% × 0.72 × 1.79
Jun 30, 2017 15.55% = 12.19% × 0.65 × 1.97
Mar 31, 2017 11.82% = 8.78% × 0.69 × 1.96
Dec 31, 2016 -9.69% = -6.58% × 0.59 × 2.50
Sep 30, 2016 -21.41% = -13.17% × 0.64 × 2.55
Jun 30, 2016 -28.03% = -17.66% × 0.61 × 2.60
Mar 31, 2016 -41.73% = -30.91% × 0.52 × 2.60
Dec 31, 2015 -59.19% = -53.89% × 0.41 × 2.66
Sep 30, 2015 = × × 2.64
Jun 30, 2015 = × × 2.65
Mar 31, 2015 = × × 2.22

Based on: 10-Q (filing date: 2020-10-30), 10-Q (filing date: 2020-07-31), 10-Q (filing date: 2020-05-01), 10-K (filing date: 2020-02-13), 10-Q (filing date: 2019-10-31), 10-Q (filing date: 2019-08-01), 10-Q (filing date: 2019-05-01), 10-K (filing date: 2019-02-13), 10-Q (filing date: 2018-10-25), 10-Q (filing date: 2018-07-26), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-15), 10-Q (filing date: 2017-10-30), 10-Q (filing date: 2017-07-28), 10-Q (filing date: 2017-04-28), 10-K (filing date: 2017-02-23), 10-Q (filing date: 2016-10-31), 10-Q (filing date: 2016-08-01), 10-Q (filing date: 2016-05-03), 10-K (filing date: 2016-02-16), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-08-04), 10-Q (filing date: 2015-05-04).

The primary reason for the increase in return on equity ratio (ROE) over Q3 2020 is the increase in profitability measured by net profit margin ratio.


Five-Component Disaggregation of ROE

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

Microsoft Excel LibreOffice Calc
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
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 40.81% = 2.76 × 0.92 × 23.18% × 0.48 × 1.43
Jun 30, 2019 43.70% = 2.63 × 0.93 × 26.32% × 0.49 × 1.39
Mar 31, 2019 45.63% = 2.94 × 0.91 × 24.59% × 0.50 × 1.39
Dec 31, 2018 47.28% = 3.44 × 0.89 × 22.39% × 0.49 × 1.41
Sep 30, 2018 22.27% = 0.98 × 0.91 × 25.78% × 0.61 × 1.59
Jun 30, 2018 15.46% = 1.40 × 0.83 × 13.67% × 0.60 × 1.61
Mar 31, 2018 9.41% = 2.22 × 0.64 × 6.61% × 0.61 × 1.65
Dec 31, 2017 12.99% = 1.69 × 0.73 × 8.59% × 0.70 × 1.75
Sep 30, 2017 10.93% = 2.77 × 0.52 × 5.93% × 0.72 × 1.79
Jun 30, 2017 15.55% = 0.99 × 0.78 × 15.64% × 0.65 × 1.97
Mar 31, 2017 11.82% = 0.92 × 0.71 × 13.37% × 0.69 × 1.96
Dec 31, 2016 -9.69% = × × -0.82% × 0.59 × 2.50
Sep 30, 2016 -21.41% = × × -6.88% × 0.64 × 2.55
Jun 30, 2016 -28.03% = × × -10.84% × 0.61 × 2.60
Mar 31, 2016 -41.73% = × × -21.69% × 0.52 × 2.60
Dec 31, 2015 -59.19% = × × -42.79% × 0.41 × 2.66
Sep 30, 2015 = × × × × 2.64
Jun 30, 2015 = × × × × 2.65
Mar 31, 2015 = × × × × 2.22

Based on: 10-Q (filing date: 2020-10-30), 10-Q (filing date: 2020-07-31), 10-Q (filing date: 2020-05-01), 10-K (filing date: 2020-02-13), 10-Q (filing date: 2019-10-31), 10-Q (filing date: 2019-08-01), 10-Q (filing date: 2019-05-01), 10-K (filing date: 2019-02-13), 10-Q (filing date: 2018-10-25), 10-Q (filing date: 2018-07-26), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-15), 10-Q (filing date: 2017-10-30), 10-Q (filing date: 2017-07-28), 10-Q (filing date: 2017-04-28), 10-K (filing date: 2017-02-23), 10-Q (filing date: 2016-10-31), 10-Q (filing date: 2016-08-01), 10-Q (filing date: 2016-05-03), 10-K (filing date: 2016-02-16), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-08-04), 10-Q (filing date: 2015-05-04).

The primary reason for the increase in return on equity ratio (ROE) over Q3 2020 is the increase in operating profitability measured by EBIT margin ratio.


Two-Component Disaggregation of ROA

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

Microsoft Excel LibreOffice Calc
ROA = Net Profit Margin × Asset Turnover
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 28.53% = 59.23% × 0.48
Jun 30, 2019 31.50% = 64.13% × 0.49
Mar 31, 2019 32.94% = 66.01% × 0.50
Dec 31, 2018 33.57% = 68.80% × 0.49
Sep 30, 2018 14.00% = 22.87% × 0.61
Jun 30, 2018 9.58% = 15.84% × 0.60
Mar 31, 2018 5.72% = 9.36% × 0.61
Dec 31, 2017 7.43% = 10.59% × 0.70
Sep 30, 2017 6.12% = 8.53% × 0.72
Jun 30, 2017 7.91% = 12.19% × 0.65
Mar 31, 2017 6.02% = 8.78% × 0.69
Dec 31, 2016 -3.87% = -6.58% × 0.59
Sep 30, 2016 -8.38% = -13.17% × 0.64
Jun 30, 2016 -10.79% = -17.66% × 0.61
Mar 31, 2016 -16.05% = -30.91% × 0.52
Dec 31, 2015 -22.26% = -53.89% × 0.41
Sep 30, 2015 = ×
Jun 30, 2015 = ×
Mar 31, 2015 = ×

Based on: 10-Q (filing date: 2020-10-30), 10-Q (filing date: 2020-07-31), 10-Q (filing date: 2020-05-01), 10-K (filing date: 2020-02-13), 10-Q (filing date: 2019-10-31), 10-Q (filing date: 2019-08-01), 10-Q (filing date: 2019-05-01), 10-K (filing date: 2019-02-13), 10-Q (filing date: 2018-10-25), 10-Q (filing date: 2018-07-26), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-15), 10-Q (filing date: 2017-10-30), 10-Q (filing date: 2017-07-28), 10-Q (filing date: 2017-04-28), 10-K (filing date: 2017-02-23), 10-Q (filing date: 2016-10-31), 10-Q (filing date: 2016-08-01), 10-Q (filing date: 2016-05-03), 10-K (filing date: 2016-02-16), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-08-04), 10-Q (filing date: 2015-05-04).

The primary reason for the increase in return on assets ratio (ROA) over Q3 2020 is the increase in profitability measured by net profit margin ratio.


Four-Component Disaggregation of ROA

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

Microsoft Excel LibreOffice Calc
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
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 28.53% = 2.76 × 0.92 × 23.18% × 0.48
Jun 30, 2019 31.50% = 2.63 × 0.93 × 26.32% × 0.49
Mar 31, 2019 32.94% = 2.94 × 0.91 × 24.59% × 0.50
Dec 31, 2018 33.57% = 3.44 × 0.89 × 22.39% × 0.49
Sep 30, 2018 14.00% = 0.98 × 0.91 × 25.78% × 0.61
Jun 30, 2018 9.58% = 1.40 × 0.83 × 13.67% × 0.60
Mar 31, 2018 5.72% = 2.22 × 0.64 × 6.61% × 0.61
Dec 31, 2017 7.43% = 1.69 × 0.73 × 8.59% × 0.70
Sep 30, 2017 6.12% = 2.77 × 0.52 × 5.93% × 0.72
Jun 30, 2017 7.91% = 0.99 × 0.78 × 15.64% × 0.65
Mar 31, 2017 6.02% = 0.92 × 0.71 × 13.37% × 0.69
Dec 31, 2016 -3.87% = × × -0.82% × 0.59
Sep 30, 2016 -8.38% = × × -6.88% × 0.64
Jun 30, 2016 -10.79% = × × -10.84% × 0.61
Mar 31, 2016 -16.05% = × × -21.69% × 0.52
Dec 31, 2015 -22.26% = × × -42.79% × 0.41
Sep 30, 2015 = × × ×
Jun 30, 2015 = × × ×
Mar 31, 2015 = × × ×

Based on: 10-Q (filing date: 2020-10-30), 10-Q (filing date: 2020-07-31), 10-Q (filing date: 2020-05-01), 10-K (filing date: 2020-02-13), 10-Q (filing date: 2019-10-31), 10-Q (filing date: 2019-08-01), 10-Q (filing date: 2019-05-01), 10-K (filing date: 2019-02-13), 10-Q (filing date: 2018-10-25), 10-Q (filing date: 2018-07-26), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-15), 10-Q (filing date: 2017-10-30), 10-Q (filing date: 2017-07-28), 10-Q (filing date: 2017-04-28), 10-K (filing date: 2017-02-23), 10-Q (filing date: 2016-10-31), 10-Q (filing date: 2016-08-01), 10-Q (filing date: 2016-05-03), 10-K (filing date: 2016-02-16), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-08-04), 10-Q (filing date: 2015-05-04).

The primary reason for the increase in return on assets ratio (ROA) over Q3 2020 is the increase in operating profitability measured by EBIT margin ratio.


Disaggregation of Net Profit Margin

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

Microsoft Excel LibreOffice Calc
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
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 59.23% = 2.76 × 0.92 × 23.18%
Jun 30, 2019 64.13% = 2.63 × 0.93 × 26.32%
Mar 31, 2019 66.01% = 2.94 × 0.91 × 24.59%
Dec 31, 2018 68.80% = 3.44 × 0.89 × 22.39%
Sep 30, 2018 22.87% = 0.98 × 0.91 × 25.78%
Jun 30, 2018 15.84% = 1.40 × 0.83 × 13.67%
Mar 31, 2018 9.36% = 2.22 × 0.64 × 6.61%
Dec 31, 2017 10.59% = 1.69 × 0.73 × 8.59%
Sep 30, 2017 8.53% = 2.77 × 0.52 × 5.93%
Jun 30, 2017 12.19% = 0.99 × 0.78 × 15.64%
Mar 31, 2017 8.78% = 0.92 × 0.71 × 13.37%
Dec 31, 2016 -6.58% = × × -0.82%
Sep 30, 2016 -13.17% = × × -6.88%
Jun 30, 2016 -17.66% = × × -10.84%
Mar 31, 2016 -30.91% = × × -21.69%
Dec 31, 2015 -53.89% = × × -42.79%
Sep 30, 2015 = × ×
Jun 30, 2015 = × ×
Mar 31, 2015 = × ×

Based on: 10-Q (filing date: 2020-10-30), 10-Q (filing date: 2020-07-31), 10-Q (filing date: 2020-05-01), 10-K (filing date: 2020-02-13), 10-Q (filing date: 2019-10-31), 10-Q (filing date: 2019-08-01), 10-Q (filing date: 2019-05-01), 10-K (filing date: 2019-02-13), 10-Q (filing date: 2018-10-25), 10-Q (filing date: 2018-07-26), 10-Q (filing date: 2018-04-27), 10-K (filing date: 2018-02-15), 10-Q (filing date: 2017-10-30), 10-Q (filing date: 2017-07-28), 10-Q (filing date: 2017-04-28), 10-K (filing date: 2017-02-23), 10-Q (filing date: 2016-10-31), 10-Q (filing date: 2016-08-01), 10-Q (filing date: 2016-05-03), 10-K (filing date: 2016-02-16), 10-Q (filing date: 2015-10-30), 10-Q (filing date: 2015-08-04), 10-Q (filing date: 2015-05-04).

The primary reason for the increase in net profit margin ratio over Q3 2020 is the increase in operating profitability measured by EBIT margin ratio.