VRTXNEUTRAL

VRTX Return on Equity (ROE) Analysis

23.5%

Updated 81h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholder equity, so VRTX's 23.5% means it earns $0.235 for every $1 of equity.

Sector Performance

74th percentile

VRTX

23.5%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

24.2%(Jul 2026)

↓ Declining

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Deep Analysis

Return on equity (ROE) measures how much profit a company generates from each dollar of shareholder equity, so VRTX's 23.5% means it earns $0.235 for every $1 of equity.

This is well above the sector median of 13.3%, placing VRTX in the 74th percentile among its sector peers. The trend shows the metric is N/A, with no year-over-year change available and a quarter-over-quarter decline of -2.9%. The high ROE indicates efficient use of capital, but the recent quarterly drop suggests a slight erosion in profitability that warrants watching. Overall, the strong level relative to peers offers a buffer against the small QoQ decline, making near-term risk moderate. This metric supports the NEUTRAL verdict: the high ROE is a positive, but the declining trend and lack of longer-term data prevent a more bullish stance.

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: LOW (-67.1%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

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.