Vertex Pharmaceuticals (Vertex Pharmaceuticals) EBIT

: $4,424 Mil (TTM As of Dec. 2023)

View and export this data going back to 1991. Start your Free Trial

Vertex Pharmaceuticals's earnings before interest and taxes (EBIT) for the three months ended in Dec. 2023 was $1,158 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Dec. 2023 was $4,424 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Vertex Pharmaceuticals's annualized ROC % for the quarter that ended in Dec. 2023 was 39.23%. Vertex Pharmaceuticals's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 320.90%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Vertex Pharmaceuticals's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Dec. 2023 was 4.82%.

Vertex Pharmaceuticals EBIT Historical Data

The historical data trend for Vertex Pharmaceuticals's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Vertex Pharmaceuticals Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

EBIT

1,453.40

3,175.10

2,791.90

4,287.20

4,423.90

Vertex Pharmaceuticals Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
EBIT																1,088.40	902.90	1,172.70	1,190.10	1,158.20

Competitive Comparison

For the Biotechnology subindustry, Vertex Pharmaceuticals's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Vertex Pharmaceuticals EV-to-EBIT Distribution

For the Biotechnology industry and Healthcare sector, Vertex Pharmaceuticals's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Vertex Pharmaceuticals's EV-to-EBIT falls into.

Vertex Pharmaceuticals EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Dec. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $4,424 Mil.

Vertex Pharmaceuticals (NAS:VRTX) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Vertex Pharmaceuticals's annualized ROC % for the quarter that ended in Dec. 2023 is calculated as:

	ROC % (Q: Dec. 2023 )
=	NOPAT	/	Average Invested Capital
=	Operating Income * ( 1 - Tax Rate % )	/	( (Invested Capital (Q: Sep. 2023 )	+	Invested Capital (Q: Dec. 2023 ))	/ count )
=	3824 * ( 1 - 15.58% )	/	( (7346.6	+	9113.2)	/ 2 )
=	3228.2208	/	8229.9
=	39.23 %

where

	Invested Capital		(Q: Sep. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	21726.2	-	3283.2	-	( 11928.2	-	max(0, 3599.4	-	14695.8	+	11928.2	))
=	7346.6

	Invested Capital		(Q: Dec. 2023 )
=	Total Assets	-	Accounts Payable & Accrued Expense	-	Excess Cash
=	Total Assets	-	Accounts Payable & Accrued Expense	-	( Cash, Cash Equivalents, Marketable Securities	-	max(0, Total Current Liabilities	-	Total Current Assets	+	Cash, Cash Equivalents, Marketable Securities	))
=	22730.2	-	3020.2	-	( 11218.3	-	max(0, 3547.4	-	14144.2	+	11218.3	))
=	9113.2

Note: The Operating Income data used here is four times the quarterly (Dec. 2023) data.

2. Joel Greenblatt's definition of Return on Capital:

Vertex Pharmaceuticals's annualized ROC (Joel Greenblatt) % for the quarter that ended in Dec. 2023 is calculated as:

	ROC (Joel Greenblatt) %		(Q: Dec. 2023 )
=	EBIT	/	Average of (Net fixed Assets	+	Net Working Capital)
=	EBIT	/	Average of (Property, Plant and Equipment	+	Net Working Capital)
			Q: Sep. 2023		Q: Dec. 2023
=	EBIT	/	( ( (Property, Plant and Equipment + Net Working Capital)	+	(Property, Plant and Equipment + Net Working Capital) )	/	count )
=	4632.8	/	( ( (1434.5 + max(-831.8, 0))	+	(1452.9 + max(-537.8, 0)) )	/	2 )
=	4632.8	/	( ( 1434.5	+	1452.9 )	/	2 )
=	4632.8	/	1443.7
=	320.90 %

where Working Capital is:

	Working Capital		(Q: Sep. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(1538.7	+	688.7	+	540.2)	-	(3283.2	+	0	+	316.2)
=	-831.8

	Working Capital		(Q: Dec. 2023 )
=	(Accounts Receivable	+	Total Inventories	+	Other Current Assets)	-	(Accounts Payable & Accrued Expense	+	Defer. Rev.	+	Other Current Liabilities)
=	(1563.4	+	738.8	+	623.7)	-	(3020.2	+	170.3	+	273.2)
=	-537.8

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Vertex Pharmaceuticals's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %	=	EBIT (TTM)	/	Enterprise Value (Q: Dec. 2023 )
	=	4423.9	/	91833.928
	=	4.82 %

Vertex Pharmaceuticals EBIT Related Terms

Thank you for viewing the detailed overview of Vertex Pharmaceuticals's EBIT provided by GuruFocus.com. Please click on the following links to see related term pages.

Vertex Pharmaceuticals (Vertex Pharmaceuticals) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Biotechnology » Vertex Pharmaceuticals Inc (NAS:VRTX) » Definitions » EBIT

Comparable Companies

Traded in Other Exchanges

VRTX:Mexico 1VRTX:Italy VX1d:UK VX1:Germany VX1:Germany VX1:Germany VX1:Germany VRTX34:Brazil VRTX:Austria

Address

50 Northern Avenue, Boston, MA, USA, 02210

Website

https://www.vrtx.com

Vertex Pharmaceuticals is a global biotechnology company that discovers and develops small-molecule drugs for the treatment of serious diseases. Its key drugs are Kalydeco, Orkambi, Symdeko, and Trikafta/Kaftrio for cystic fibrosis, where Vertex therapies remain the standard of care globally. Vertex is diversifying its pipeline through gene-editing therapies such as CTX001 for beta thalassemia and sickle-cell disease, small-molecule inhibitors targeting acute and chronic pain using nonopioid treatments, and small-molecule inhibitors of APOL1-mediated kidney diseases. Vertex is also investigating cell therapies to deliver a potential functional cure for type 1 diabetes.

Executives

Jeffrey M Leiden	director	15 N BEACH ROAD, HOBE SOUND FL 33455
Wagner Charles F Jr	officer: EVP & Chief Financial Officer	C/O MILLIPORE CORP, BILLERICA MA 01820
Reshma Kewalramani	director, officer: CEO & President	C/O VERTEX PHARMACEUTICALS, INC., 50 NORTHERN AVENUE, BOSTON MA 02210
Stuart A Arbuckle	officer: EVP, COO	VERTEX PHARMACEUTICALS INCORPORATED, 130 WAVERLY ST., CAMBRIDGE MA 02139
Amit Sachdev	officer: SVP, Public Policy,Gov Affairs	C/O VERTEX PHARMACEUTICALS INCORPORATED, 130 WAVERLY STREET, CAMBRIDGE MA 02139
David Altshuler	officer: EVP, Global Research and CSO	C/O VERTEX PHARMACEUTICALS INCORPORATED, 130 WAVERLY STREET, CAMBRIDGE MA 02139
Carmen Bozic	officer: EVP and CMO	C/O VERTEX PHARMACEUTICALS, INC., 50 NORTHERN AVENUE, BOSTON MA 02210
Bruce I Sachs	director	C/O VERTEX PHARMACEUTICALS, INC., 50 NORTHERN AVENUE, BOSTON MA 02210
Sangeeta N. Bhatia	director	C/O VERTEX PHARMACEUTICALS, INC., 50 NORTHERN AVENUE, BOSTON MA 02210
Michel Lagarde	director	450 LEXINGTON AVE., 31ST FLOOR, NEW YORK NY 10017
Atkinson Edward Morrow Iii	officer: EVP, Chief Technical Ops. Off.	C/O 89BIO, INC., 142 SANSOME STREET, SECOND FLOOR, SAN FRANCISCO CA 94104
Ourania Tatsis	officer: EVP, Chief Reg. & Quality Off.	C/O VERTEX PHARMACEUTICALS, INC., 50 NORTHERN AVENUE, BOSTON MA 02210
Terrence C Kearney	director	IN CARE OF HOSPIRA, INC., 275 NORTH FIELD DRIVE, LAKE FOREST IL 60045
Kristen Ambrose	officer: SVP & Chief Accounting Officer	C/O VERTEX PHARMACEUTICALS INCORPORATED, 50 NORTHERN AVENUE, BOSTON MA 02210
Bastiano Sanna	officer: EVP, Cell & Genetic Therapies	C/O VERTEX PHARMACEUTICALS INCORPORATED, 50 NORTHERN AVENUE, BOSTON MA 02210