West Pharmaceutical Services Inc (WST)
Gross profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 998,500 | 1,129,200 | 1,136,200 | 1,175,800 | 767,800 |
| Revenue | US$ in thousands | 2,893,200 | 2,949,800 | 2,886,900 | 2,831,600 | 2,146,900 |
| Gross profit margin | 34.51% | 38.28% | 39.36% | 41.52% | 35.76% |
December 31, 2024 calculation
Gross profit margin = Gross profit ÷ Revenue
= $998,500K ÷ $2,893,200K
= 34.51%
The gross profit margin of West Pharmaceutical Services Inc has exhibited fluctuations over the past five years. It increased from 35.76% as of December 31, 2020, to 41.52% as of December 31, 2021, indicating an improvement in the company's ability to generate profit from its core operations.
However, in the subsequent years, the gross profit margin displayed a slight decline. As of December 31, 2022, it stood at 39.36%, dropping further to 38.28% by December 31, 2023. The most significant decrease occurred by December 31, 2024, where the gross profit margin fell to 34.51%.
These fluctuations in the gross profit margin suggest that West Pharmaceutical Services Inc may have experienced changes in its cost structures, pricing strategies, or product mix over the years. It is essential for the company to closely monitor and manage its cost of goods sold to maintain a healthy level of profitability and operational efficiency.
Peer comparison
Dec 31, 2024