West Pharmaceutical Services Inc (WST)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 569,900 | 676,000 | 734,000 | 752,300 | 406,900 |
| Total assets | US$ in thousands | 3,643,400 | 3,829,500 | 3,616,800 | 3,313,800 | 2,793,800 |
| Operating ROA | 15.64% | 17.65% | 20.29% | 22.70% | 14.56% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $569,900K ÷ $3,643,400K
= 15.64%
West Pharmaceutical Services Inc's operating return on assets (Operating ROA) has shown a positive trend over the past five years, indicating efficient utilization of its assets to generate operating income. The company's Operating ROA increased from 14.56% in December 2020 to 22.70% in December 2021, demonstrating a significant improvement in profitability efficiency. Subsequently, the Operating ROA slightly decreased to 20.29% in December 2022 but remained at a relatively high level compared to the base year.
In December 2023, the Operating ROA decreased further to 17.65%, indicating a decline in the company's ability to generate operating income from its assets. However, West Pharmaceutical Services Inc was able to improve its efficiency in the following year, with the Operating ROA increasing to 15.64% in December 2024. While this is lower than the peak in 2021, it shows a recovery from the decline experienced in 2023.
Overall, West Pharmaceutical Services Inc has demonstrated a generally positive trend in its Operating ROA, with fluctuations in performance over the years. Investors and stakeholders may want to further investigate the factors contributing to these fluctuations to assess the company's operational efficiency and profitability sustainability.
Peer comparison
Dec 31, 2024