West Pharmaceutical Services Inc (WST)
Operating profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 676,000 | 734,000 | 752,300 | 406,900 | 296,600 |
| Revenue | US$ in thousands | 2,918,500 | 2,886,900 | 2,831,600 | 2,146,900 | 1,839,900 |
| Operating profit margin | 23.16% | 25.43% | 26.57% | 18.95% | 16.12% |
December 31, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $676,000K ÷ $2,918,500K
= 23.16%
West Pharmaceutical Services, Inc.'s operating profit margin has shown a positive trend over the five-year period from 2019 to 2023. The operating profit margin increased from 15.98% in 2019 to 23.98% in 2023, indicating an improvement in the company's profitability and efficiency in managing its operating expenses relative to its revenue. The company's operating profit margin reached its peak in 2021 at 26.85% before slightly declining in the following years. Overall, the consistent increase in operating profit margin reflects West Pharmaceutical Services, Inc.'s ability to generate more profit from its core business operations over time.
Peer comparison
Dec 31, 2023