Gross Margin % is calculated as gross profit divided by its revenue. Vertex Pharmaceuticals's Gross Profit for the
three
months ended in Jun. 2022 was $1,934 Mil. Vertex Pharmaceuticals's Revenue for the
three
months ended in Jun. 2022 was $2,196 Mil. Therefore, Vertex Pharmaceuticals's Gross Margin % for the quarter that ended in Jun. 2022 was 88.08%.
The historical rank and industry rank for Vertex Pharmaceuticals's Gross Margin % or its related term are showing as below:
VRTX'
s Gross Margin % Range Over the Past 10 Years
Min: 81.67 Med: 88 Max: 89.49
Current: 88.13
During the past 13 years, the highestGross Margin % of Vertex Pharmaceuticals was 89.49%. The lowest was 81.67%. And the median was 88.00%.
VRTX's Gross Margin % is ranked better than 81.53% of 720
companies
in the Biotechnology industry
Industry Median: 61.58
vs VRTX: 88.13
Vertex Pharmaceuticals had a gross margin of 88.08% for the quarter that ended in Jun. 2022 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Vertex Pharmaceuticals was 0.00% per year.
Vertex Pharmaceuticals Gross Margin % Historical Data
The historical data trend for Vertex Pharmaceuticals's Gross Margin % 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
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Gross Margin %
88.95
86.56
86.84
88.14
88.06
Vertex Pharmaceuticals Quarterly Data
Sep17
Dec17
Mar18
Jun18
Sep18
Dec18
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Gross Margin %
87.29
88.08
88.06
88.28
88.08
Competitive Comparison
For the Biotechnology subindustry, Vertex Pharmaceuticals's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % Distribution
For the Biotechnology industry and Healthcare sector, Vertex Pharmaceuticals's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Vertex Pharmaceuticals's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Vertex Pharmaceuticals had a gross margin of 88.08% for the quarter that ended in Jun. 2022 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Vertex Pharmaceuticals Gross Margin % Related Terms
Thank you for viewing the detailed overview of Vertex Pharmaceuticals's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
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. In addition to its focus on cystic fibrosis, 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 non-opioid 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.
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