West Pharmaceutical Services Inc (WST)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 574,500 | 575,800 | 591,800 | 643,500 | 676,000 | 613,700 | 575,500 | 621,400 | 655,800 | 741,200 | 783,500 | 766,400 | 752,300 | 684,400 | 602,200 | 494,500 | 406,900 | 368,900 | 337,000 | 313,900 |
| Total assets | US$ in thousands | 3,643,400 | 3,675,100 | 3,489,400 | 3,602,300 | 3,829,500 | 3,754,700 | 3,669,600 | 3,723,600 | 3,616,800 | 3,316,800 | 3,361,700 | 3,294,700 | 3,313,800 | 3,142,600 | 2,933,500 | 2,739,700 | 2,793,800 | 2,582,800 | 2,392,300 | 2,246,500 |
| Operating ROA | 15.77% | 15.67% | 16.96% | 17.86% | 17.65% | 16.34% | 15.68% | 16.69% | 18.13% | 22.35% | 23.31% | 23.26% | 22.70% | 21.78% | 20.53% | 18.05% | 14.56% | 14.28% | 14.09% | 13.97% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $574,500K ÷ $3,643,400K
= 15.77%
The operating return on assets (operating ROA) for West Pharmaceutical Services Inc has shown a generally positive trend from March 2020 to December 2024. The operating ROA increased steadily from 13.97% in March 2020 to a peak of 23.31% in June 2022, indicating efficient utilization of assets to generate operating income.
However, after reaching its peak in June 2022, the operating ROA started to decline gradually. By December 2024, the operating ROA decreased to 15.77%, reflecting a decrease in the company's operating efficiency in generating profits from its assets compared to the previous periods.
It is important for West Pharmaceutical Services Inc to monitor and potentially address this decline in operating ROA to ensure sustained profitability and operational performance in the future. Understanding the factors contributing to the decrease in operating ROA will be crucial for the company to make informed decisions and implement strategies to improve efficiency and enhance financial performance.
Peer comparison
Dec 31, 2024