Analysis of Geographic Areas
Vertex Pharmaceuticals Inc. operates in 2 regions: United States and Outside of the United States.
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- Statement of Comprehensive Income
- Common-Size Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- Common Stock Valuation Ratios
- Selected Financial Data since 2005
- Net Profit Margin since 2005
- Operating Profit Margin since 2005
- Return on Assets (ROA) since 2005
- Debt to Equity since 2005
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Area Asset Turnover
Vertex Pharmaceuticals Inc., asset turnover by geographic area
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| United States | |||||
| Outside of the United States |
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).
An examination of area asset turnover reveals distinct trends between the United States and regions outside of the United States. The United States demonstrates a decreasing trend in asset turnover, while areas outside of the United States, though also exhibiting a recent decline, maintain substantially higher turnover rates.
- United States
- Asset turnover in the United States increased from 3.92 in 2021 to 4.44 in 2023, indicating improving efficiency in asset utilization. However, a significant decrease is then observed, falling to 2.79 in 2024 and further to 2.61 in 2025. This recent decline suggests a potential weakening in the ability to generate sales from its assets within the United States.
- Outside of the United States
- Asset turnover outside of the United States consistently increased from 29.96 in 2021 to 41.08 in 2023, demonstrating a strong and sustained improvement in asset utilization. Similar to the United States, a decrease is noted in subsequent years, with values of 22.56 in 2024 and 22.88 in 2025. Despite this decline, the asset turnover remains considerably higher than that of the United States, indicating a more efficient use of assets in these regions.
- Comparative Analysis
- The difference in asset turnover between the two areas is substantial. Throughout the period, areas outside of the United States consistently exhibit a significantly higher ratio, suggesting a greater ability to generate revenue from its asset base compared to the United States. The converging downward trend in 2024 and 2025 warrants further investigation to determine the underlying causes and potential implications for overall company performance.
The observed declines in both geographic areas during the latter years of the period suggest potential factors impacting sales or asset efficiency that are affecting both regions, though to differing degrees. Further analysis is recommended to understand the drivers behind these changes and their potential impact on future financial performance.
Area Asset Turnover: United States
Vertex Pharmaceuticals Inc.; United States; area asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Revenues | |||||
| Long-lived assets | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
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).
1 2025 Calculation
Area asset turnover = Revenues ÷ Long-lived assets
= ÷ =
The financial performance related to asset utilization within the United States demonstrates a complex trend over the five-year period. Revenues consistently increased, while long-lived assets experienced a more variable pattern. This interplay significantly impacted the area asset turnover ratio.
- Revenues
- Revenues originating from the United States exhibited a steady upward trajectory, increasing from US$5,288.3 million in 2021 to US$7,548.6 million in 2025. This represents a cumulative growth of approximately 42.6% over the observed period. The rate of growth appears to have accelerated in the later years, with a more substantial increase between 2023 and 2025.
- Long-Lived Assets
- Long-lived assets in the United States initially showed modest growth, rising from US$1,348.1 million in 2021 to US$1,365.5 million in 2022. A slight decrease was noted in 2023, falling to US$1,359.7 million. However, a significant increase occurred in 2024, reaching US$2,392.4 million, and continued into 2025, reaching US$2,888.4 million. This substantial increase in assets suggests potential investments in property, plant, and equipment, or acquisitions within the United States.
- Area Asset Turnover
- The area asset turnover ratio, which measures the efficiency with which assets are used to generate revenue, initially increased from 3.92 in 2021 to 4.44 in 2023. This indicates improving asset utilization. However, the ratio then declined sharply to 2.79 in 2024 and further to 2.61 in 2025. This decrease coincides with the substantial increase in long-lived assets, suggesting that the increased investment in assets has not yet translated into a proportional increase in revenue. The declining ratio warrants further investigation to determine the reasons for the reduced efficiency, such as potential underutilization of new assets or a lag in revenue generation following asset expansion.
In summary, while revenue growth in the United States has been consistent, the increasing investment in long-lived assets has led to a decrease in asset turnover. This suggests a potential need to optimize asset utilization strategies to maximize revenue generation from the existing asset base.
Area Asset Turnover: Outside of the United States
Vertex Pharmaceuticals Inc.; Outside of the United States; area asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Revenues | |||||
| Long-lived assets | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
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).
1 2025 Calculation
Area asset turnover = Revenues ÷ Long-lived assets
= ÷ =
Analysis of the provided financial information reveals a fluctuating pattern in area asset turnover outside of the United States between 2021 and 2025. Revenues and long-lived assets both increased over the period, but the efficiency with which assets generate revenue has varied.
- Revenues
- Revenues exhibited a consistent upward trend, increasing from US$2,286.1 million in 2021 to US$4,452.7 million in 2025. This represents a substantial overall growth in revenue generation during the analyzed timeframe.
- Long-Lived Assets
- Long-lived assets also increased, though at a slower pace than revenues. The value rose from US$76.3 million in 2021 to US$194.6 million in 2025. A significant jump in long-lived assets occurred between 2022 and 2024, indicating potential investment in property, plant, and equipment or acquisitions.
- Area Asset Turnover
- The area asset turnover ratio initially demonstrated strong improvement, rising from 29.96 in 2021 to a peak of 41.08 in 2023. This suggests increasing efficiency in asset utilization. However, a marked decline was observed in 2024, with the ratio falling to 22.56. This trend continued modestly into 2025, with a ratio of 22.88. The decrease in asset turnover, despite continued revenue growth, suggests that the increased investment in long-lived assets in 2024 did not immediately translate into proportional revenue gains, or that revenue growth slowed relative to asset growth.
The divergence between revenue and asset turnover trends in the later years warrants further investigation. Potential factors contributing to the decline in asset turnover could include inefficiencies in asset management, the timing of asset deployment, or changes in the composition of assets. The substantial increase in long-lived assets in 2024 appears to be a key driver of the observed shift in asset turnover.
Revenues
Vertex Pharmaceuticals Inc., revenues by geographic area
US$ in thousands
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| United States | |||||
| Outside of the United States | |||||
| Total |
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).
Revenues demonstrate consistent growth across all geographic areas examined between 2021 and 2025. The United States represents the largest portion of overall revenue, and continues to exhibit substantial year-over-year increases. Revenue from areas outside of the United States also increased during the period, though at a comparatively slower rate in the later years.
- United States Revenue Trend
- Revenue from the United States increased from US$5,288.3 million in 2021 to US$7,548.6 million in 2025. This represents a cumulative growth of approximately 42.6% over the five-year period. The largest single-year increase occurred between 2023 and 2024, with a rise of US$644.5 million. Growth rates remained positive throughout the period, indicating sustained demand within this market.
- Outside of the United States Revenue Trend
- Revenue generated from regions outside of the United States grew from US$2,286.1 million in 2021 to US$4,452.7 million in 2025, a cumulative increase of roughly 94.5%. The most significant growth occurred between 2021 and 2022, with an increase of US$945.3 million. While growth continued in subsequent years, the rate of increase decelerated, particularly between 2024 and 2025, where the increase was only US$117.5 million.
- Total Revenue Trend
- Total revenue increased from US$7,574.4 million in 2021 to US$12,001.3 million in 2025, representing a cumulative growth of 58.4%. The largest year-over-year increase in total revenue also occurred between 2023 and 2024, reaching US$1,150.9 million. The contribution of the United States to total revenue remains dominant, and its growth is a primary driver of overall revenue performance.
The deceleration in growth for revenues outside of the United States warrants further investigation. While still positive, the reduced rate of increase may indicate increased competition, market saturation, or other regional factors impacting sales. Continued monitoring of these trends is recommended.
Long-lived assets
Vertex Pharmaceuticals Inc., long-lived assets by geographic area
US$ in thousands
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| United States | |||||
| Outside of the United States | |||||
| Total |
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 value of long-lived assets within the United States exhibited a generally increasing trend over the five-year period. While a slight decrease was noted between 2022 and 2023, a substantial increase occurred in 2024 and continued into 2025. Outside of the United States, long-lived assets also demonstrated an upward trend, though at a considerably smaller scale than within the United States. Total long-lived assets mirrored the growth observed in the United States, with significant expansion in 2024 and 2025.
- United States - Trend Analysis
- The value of long-lived assets in the United States began at US$1,348.1 million in 2021, increasing to US$1,365.5 million in 2022. A minor decline to US$1,359.7 million was observed in 2023 before a significant rise to US$2,392.4 million in 2024. This growth continued into 2025, reaching US$2,888.4 million. The period from 2023 to 2025 shows particularly strong growth.
- Outside of the United States - Trend Analysis
- Long-lived assets outside of the United States increased from US$76.3 million in 2021 to US$90.3 million in 2022, and US$93.2 million in 2023. Further growth was seen in 2024, reaching US$192.2 million, and continued to US$194.6 million in 2025. While consistently increasing, the absolute growth remains substantially lower than that observed in the United States.
- Total - Trend Analysis
- Total long-lived assets followed the trend of the United States, starting at US$1,424.4 million in 2021 and increasing to US$1,455.8 million in 2022. A slight decrease to US$1,452.9 million occurred in 2023, followed by a substantial increase to US$2,584.6 million in 2024 and US$3,083.0 million in 2025. The majority of the total asset growth is attributable to the United States.
- Proportional Allocation
- Throughout the period, the vast majority of long-lived assets are held within the United States. In 2021, assets in the United States represented approximately 98.8% of the total, increasing to approximately 98.9% in 2025. This indicates a continued concentration of long-lived assets within the United States.