West Pharmaceutical Services Inc (WST)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 676,000 | 644,800 | 653,700 | 699,600 | 734,000 | 788,300 | 783,500 | 766,400 | 752,300 | 684,400 | 602,200 | 494,500 | 406,900 | 368,900 | 337,000 | 313,900 | 296,600 | 284,300 | 277,800 | 257,600 |
| Total assets | US$ in thousands | 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 | 2,341,400 | 2,174,000 | 2,123,200 | 2,036,200 |
| Operating ROA | 17.65% | 17.17% | 17.81% | 18.79% | 20.29% | 23.77% | 23.31% | 23.26% | 22.70% | 21.78% | 20.53% | 18.05% | 14.56% | 14.28% | 14.09% | 13.97% | 12.67% | 13.08% | 13.08% | 12.65% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $676,000K ÷ $3,829,500K
= 17.65%
West Pharmaceutical Services, Inc.'s operating return on assets (operating ROA) has shown a declining trend over the past few quarters. The operating ROA decreased from 23.79% in Q3 2022 to 18.47% in Q4 2023, indicating a decline in the company's ability to generate profits from its assets through operations. This downward trend suggests that the company may be experiencing challenges in efficiently utilizing its assets to generate operating income. Further analysis and investigation into the factors driving this decline in operating ROA would be beneficial to determine the root causes and develop strategies for improvement.
Peer comparison
Dec 31, 2023