West Pharmaceutical Services Inc (WST)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 1,129,200 | 1,136,200 | 1,175,800 | 767,800 | 605,700 |
| Revenue | US$ in thousands | 2,918,500 | 2,886,900 | 2,831,600 | 2,146,900 | 1,839,900 |
| Gross profit margin | 38.69% | 39.36% | 41.52% | 35.76% | 32.92% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $1,129,200K ÷ $2,918,500K
= 38.69%
The gross profit margin of West Pharmaceutical Services, Inc. has exhibited some fluctuations over the past five years. From 2019 to 2023, the trend shows some variability in performance, with the margin starting at 32.92% in 2019, increasing to 41.52% in 2021, and then experiencing a slight decline to 38.28% in 2023.
Overall, the company's gross profit margin indicates the percentage of revenue that remains after accounting for the cost of goods sold. The fluctuations in the margin suggest changes in the company's pricing strategy, cost structure, and efficiency in managing production costs. A higher gross profit margin signifies that the company is effectively controlling its production costs relative to its revenue, while a lower margin may indicate pricing pressure, higher production costs, or inefficiencies in operations.
Further analysis and comparison with industry benchmarks and competitors would provide additional insights into the company's performance and competitiveness in the market.
Peer comparison
Dec 31, 2023