West Pharmaceutical Services Inc (WST)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 3,829,500 | 3,616,800 | 3,313,800 | 2,793,800 | 2,341,400 |
| Operating ROA | 17.65% | 20.29% | 22.70% | 14.56% | 12.67% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $676,000K ÷ $3,829,500K
= 17.65%
West Pharmaceutical Services, Inc.'s operating return on assets (operating ROA) has shown a fluctuating trend over the past five years. The company experienced a significant increase in operating ROA from 2019 to 2021, with the ratio peaking at 22.94% in 2021. This indicates that the company was able to generate more operating income relative to its total assets during this period.
However, the operating ROA decreased slightly in 2022 and further in 2023 to 18.47%. While the ratio remains relatively high compared to previous years, the downward trend suggests that the company may be facing challenges in maintaining or improving its operational efficiency in utilizing its assets to generate profits. Overall, a higher operating ROA indicates better operational efficiency and profitability for the company, and West Pharmaceutical Services, Inc. has demonstrated solid performance in this aspect over the analyzed period, despite some recent declines.
Peer comparison
Dec 31, 2023