West Pharmaceutical Services Inc (WST)
Gross profit margin
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 999,800 | 1,004,400 | 1,028,000 | 1,088,100 | 1,129,200 | 1,113,100 | 1,092,800 | 1,122,900 | 1,136,200 | 1,174,700 | 1,194,900 | 1,188,500 | 1,175,800 | 1,086,300 | 992,700 | 872,700 | 767,800 | 709,900 | 663,100 | 625,900 |
| Revenue (ttm) | US$ in thousands | 2,893,100 | 2,876,300 | 2,876,800 | 2,928,600 | 2,949,800 | 2,926,500 | 2,866,000 | 2,883,500 | 2,886,900 | 2,909,000 | 2,928,600 | 2,880,900 | 2,831,600 | 2,681,000 | 2,522,500 | 2,326,100 | 2,146,900 | 2,037,300 | 1,945,400 | 1,887,900 |
| Gross profit margin | 34.56% | 34.92% | 35.73% | 37.15% | 38.28% | 38.04% | 38.13% | 38.94% | 39.36% | 40.38% | 40.80% | 41.25% | 41.52% | 40.52% | 39.35% | 37.52% | 35.76% | 34.85% | 34.09% | 33.15% |
December 31, 2024 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $999,800K ÷ $2,893,100K
= 34.56%
Over the period from March 31, 2020, to December 31, 2024, West Pharmaceutical Services Inc's gross profit margin exhibited fluctuations. It started at 33.15% and experienced a consistent increase reaching a peak of 41.52% by December 31, 2021. This upward trend reflected an improvement in the company's ability to generate profits from its core operations.
However, from March 31, 2022, the gross profit margin began to decline, dropping to 34.56% by December 31, 2024. This decrease indicates that West Pharmaceutical Services Inc faced challenges in maintaining profitability, possibly due to factors such as increased costs or pricing pressures.
Despite the decline in the latter part of the period, the company's gross profit margin remained above the initial level, suggesting that West Pharmaceutical Services Inc managed to sustain a relatively healthy level of profitability compared to the baseline established in 2020. Monitoring this ratio in conjunction with other financial metrics can provide a comprehensive understanding of the company's overall financial health and performance.
Peer comparison
Dec 31, 2024