West Pharmaceutical Services Inc (WST)

Gross profit margin

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Gross profit (ttm)	US$ in thousands	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	605,700	585,700	573,500	557,800
Revenue (ttm)	US$ in thousands	2,931,600	2,918,300	2,862,000	2,884,600	2,888,000	2,911,600	2,929,000	2,882,500	2,833,200	2,681,100	2,521,700	2,320,600	2,141,400	2,030,200	1,941,400	1,887,900	1,839,900	1,791,800	1,767,400	1,745,200
Gross profit margin		38.52%	38.14%	38.18%	38.93%	39.34%	40.35%	40.80%	41.23%	41.50%	40.52%	39.37%	37.61%	35.86%	34.97%	34.16%	33.15%	32.92%	32.69%	32.45%	31.96%

December 31, 2023 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $1,129,200K ÷ $2,931,600K
= 38.52%

The gross profit margin of West Pharmaceutical Services, Inc. has shown a consistent downward trend over the past eight quarters, decreasing from 41.25% in Q1 2022 to 38.28% in Q4 2023. This indicates that the company's cost of goods sold relative to its revenue has been increasing, which could be a result of rising production costs, pricing pressures, or inefficiencies in the production process. It is important for the company to closely monitor and address the factors impacting its gross profit margin to ensure sustainable profitability and operational efficiency.

Peer comparison

Dec 31, 2023

Company name

Symbol

Gross profit margin

West Pharmaceutical Services Inc

WST

38.52%

Carlisle Companies Incorporated

CSL

35.63%