West Pharmaceutical Services Inc (WST)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 715,700 | 700,600 | 769,000 | 418,700 | 300,700 |
| Revenue | US$ in thousands | 2,918,500 | 2,886,900 | 2,831,600 | 2,146,900 | 1,839,900 |
| Pretax margin | 24.52% | 24.27% | 27.16% | 19.50% | 16.34% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $715,700K ÷ $2,918,500K
= 24.52%
The pretax margin of West Pharmaceutical Services, Inc. has shown a consistent trend of improvement over the past five years. The company's pretax margin increased from 16.34% in 2019 to 24.26% in 2023, with fluctuations in between. This indicates that the company has become more efficient in managing its operating expenses relative to its revenue, resulting in a higher percentage of earnings before taxes.
The peak pretax margin of 27.16% in 2021 suggests that the company was able to effectively control its expenses and optimize its operations that year. However, there was a slight decrease in the pretax margin in 2022 and 2023, indicating potential challenges or changes in the company's cost structure or revenue streams during those years.
Overall, West Pharmaceutical Services, Inc. has demonstrated a strong performance in terms of pretax margin, showcasing its ability to generate profits before accounting for taxes and showcasing efficiency in its operations. Monitoring this margin over time can provide insights into the company's operational effectiveness and financial health.
Peer comparison
Dec 31, 2023