West Pharmaceutical Services Inc (WST)
Pretax margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 585,500 | 588,800 | 611,300 | 667,500 | 698,000 | 658,500 | 607,700 | 650,000 | 679,900 | 733,100 | 778,000 | 761,800 | 748,900 | 682,100 | 598,700 | 489,700 | 401,300 | 363,600 | 330,800 | 308,400 |
| Revenue (ttm) | US$ in thousands | 2,893,100 | 2,876,300 | 2,876,800 | 2,928,600 | 2,949,800 | 2,926,500 | 2,866,000 | 2,883,500 | 2,886,900 | 2,909,000 | 2,928,600 | 2,880,900 | 2,831,600 | 2,681,000 | 2,522,500 | 2,326,100 | 2,146,900 | 2,037,300 | 1,945,400 | 1,887,900 |
| Pretax margin | 20.24% | 20.47% | 21.25% | 22.79% | 23.66% | 22.50% | 21.20% | 22.54% | 23.55% | 25.20% | 26.57% | 26.44% | 26.45% | 25.44% | 23.73% | 21.05% | 18.69% | 17.85% | 17.00% | 16.34% |
December 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $585,500K ÷ $2,893,100K
= 20.24%
The pretax margin of West Pharmaceutical Services Inc has shown a generally positive trend over the period from March 31, 2020, to December 31, 2024. The pretax margin, which measures the company's profitability before taxes as a percentage of total revenue, increased steadily from 16.34% in March 2020 to a peak of 26.57% in June 2022. This upward trajectory reflects an improvement in the company's ability to generate profits relative to its revenue during this period.
However, after reaching its peak in June 2022, the pretax margin started to decline gradually, reaching 20.24% by December 31, 2024. The decrease in pretax margin in the later part of the period may indicate that the company faced challenges in maintaining its profitability levels or controlling costs efficiently.
Overall, West Pharmaceutical Services Inc exhibited strong pretax margins during the analyzed period, indicating an effective operational performance in generating profits before accounting for taxes. However, the recent downward trend in pretax margin from the peak suggests the importance of monitoring cost management and revenue generation strategies to sustain profitability in the future.
Peer comparison
Dec 31, 2024