West Pharmaceutical Services Inc (WST)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 34.51% | 38.28% | 39.36% | 41.52% | 35.76% |
| Operating profit margin | 19.70% | 22.92% | 25.43% | 26.57% | 18.95% |
| Pretax margin | 20.24% | 23.66% | 23.55% | 26.45% | 18.69% |
| Net profit margin | 17.03% | 20.12% | 20.30% | 23.37% | 16.13% |
West Pharmaceutical Services Inc has shown a consistent improvement in gross profit margin over the five-year period, increasing from 35.76% in 2020 to 39.36% in 2022, before experiencing a slight decline to 34.51% in 2024. This indicates the company's ability to generate revenue efficiently after accounting for the cost of goods sold.
In terms of operating profit margin, West Pharmaceutical Services Inc demonstrated a significant increase from 18.95% in 2020 to 26.57% in 2021, followed by relatively stable margins around the 25% range in the subsequent years. This suggests efficient management of operating expenses and better profitability from core operations.
The company's pretax margin fluctuated over the period, with a noticeable jump from 18.69% in 2020 to 26.45% in 2021, and then showing some volatility in the following years. This ratio reflects the firm's ability to control costs and generate earnings before taxes.
Net profit margin also witnessed an upward trend initially, rising from 16.13% in 2020 to 23.37% in 2021, but later experienced a slight decline to 17.03% in 2024. Despite the reduction, West Pharmaceutical Services Inc has maintained a healthy level of profitability after accounting for all expenses, including taxes and interest.
Overall, the company has demonstrated solid profitability ratios over the analyzed period, indicating effective cost management and revenue generation strategies.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 15.64% | 17.65% | 20.29% | 22.70% | 14.56% |
| Return on assets (ROA) | 13.52% | 15.50% | 16.20% | 19.97% | 12.39% |
| Return on total capital | 21.94% | 24.53% | 28.58% | 33.09% | 22.79% |
| Return on equity (ROE) | 18.37% | 20.60% | 21.82% | 28.34% | 18.67% |
The profitability ratios of West Pharmaceutical Services Inc show a positive trend over the years, indicating efficient utilization of assets and capital.
The Operating return on assets (Operating ROA) has improved steadily from 14.56% in 2020 to 22.70% in 2021, showing strong operational performance. Although there was a slight decline to 20.29% in 2022, it remained relatively high and then decreased further to 17.65% in 2023 and 15.64% in 2024.
Similarly, the Return on assets (ROA) also exhibited an upward trajectory, increasing from 12.39% in 2020 to 19.97% in 2021. However, it declined to 16.20% in 2022 and continued to decrease to 15.50% in 2023 and 13.52% in 2024.
The Return on total capital displayed a consistent growth pattern, rising from 22.79% in 2020 to 33.09% in 2021, reflecting effective capital allocation. Despite a slight dip to 28.58% in 2022, it remained robust before decreasing to 24.53% in 2023 and 21.94% in 2024.
Lastly, the Return on equity (ROE) demonstrated a similar trend, increasing from 18.67% in 2020 to 28.34% in 2021, indicating enhanced returns for shareholders. However, it declined in the following years to 21.82% in 2022, 20.60% in 2023, and 18.37% in 2024.
Overall, West Pharmaceutical Services Inc has shown strong profitability metrics, with fluctuations observed in some ratios, likely driven by changes in operational efficiency, asset utilization, and capital structure.