VRTXNEUTRAL

Return on Equity (ROE)

24.2%

Updated 246h ago

Sector Performance

74th percentile

VRTX

24.2%

Sector Median

13.8%

Sector Avg

31.4%

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Deep Analysis

The current Return on Equity (ROE) of 24.2% means that for every dollar of shareholders’ equity, the company generated 24.2 cents in net profit over the past twelve months — a measure of how efficiently it uses investor capital.

This value sits well above the sector median of 13.8%, placing the company in the 74th percentile among its peers, indicating above-average profitability relative to the industry. The year-over-year change is not available, but quarter-over-quarter ROE increased by 14.2% (from 21.2% to 24.2%), showing a recent improvement. The combination of a high absolute ROE and a positive quarterly trend suggests the company is currently generating strong returns, but the limited historical data (only two data points) increases uncertainty about the durability of that performance. This metric supports the overall NEUTRAL verdict: the strong level and recent uptick are favorable, yet the lack of a longer trend and a neutral overall assessment reflect that other factors likely temper the investment case.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about VRTX?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are VRTX's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: MRNA (-36.6%), FICO (-37.3%), XRAY (-37.7%), VRSN (-38.3%), MSCI (-45.3%).

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.