West Pharmaceutical Services Inc (WST)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 34.56% | 34.92% | 35.73% | 37.15% | 38.28% | 38.04% | 38.13% | 38.94% | 39.36% | 40.38% | 40.80% | 41.25% | 41.52% | 40.52% | 39.35% | 37.52% | 35.76% | 34.85% | 34.09% | 33.15% |
| Operating profit margin | 19.86% | 20.02% | 20.57% | 21.97% | 22.92% | 20.97% | 20.08% | 21.55% | 22.72% | 25.48% | 26.75% | 26.60% | 26.57% | 25.53% | 23.87% | 21.26% | 18.95% | 18.11% | 17.32% | 16.63% |
| 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% |
| Net profit margin | 17.03% | 17.37% | 18.25% | 19.42% | 20.12% | 19.11% | 18.10% | 19.15% | 20.30% | 21.68% | 23.41% | 23.76% | 23.37% | 22.85% | 20.58% | 18.19% | 16.13% | 15.30% | 14.69% | 13.80% |
West Pharmaceutical Services Inc has shown a gradual increase in its gross profit margin from March 31, 2020, to December 31, 2021, reaching a peak of 41.52%. However, there was a slight decline in the margin to 34.56% by December 31, 2024.
The operating profit margin followed a similar trend, with a steady increase up to September 30, 2021 (25.53%), but then declined to 19.86% by the end of December 31, 2024.
The pretax margin also exhibited an upward trajectory, peaking at 26.57% by December 31, 2021, before gradually decreasing to 20.24% by the end of December 31, 2024.
In terms of net profit margin, West Pharmaceutical Services Inc experienced a rise up to December 31, 2021, where it reached 23.37%. However, there was a subsequent decline to 17.03% by the end of December 31, 2024.
Overall, while the company's profitability ratios have shown positive growth and fluctuations over the years, there are some signs of a decrease in profitability towards the end of the period, which may warrant further investigation and strategic planning.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 13.52% | 13.59% | 15.04% | 15.79% | 15.50% | 14.90% | 14.14% | 14.83% | 16.20% | 19.01% | 20.39% | 20.77% | 19.97% | 19.49% | 17.70% | 15.44% | 12.39% | 12.07% | 11.94% | 11.60% |
| Return on total capital | 21.79% | 21.56% | 23.73% | 24.96% | 24.42% | 25.96% | 25.45% | 26.58% | 28.58% | 30.14% | 32.66% | 33.35% | 32.83% | 31.46% | 30.31% | 28.11% | 22.54% | 21.76% | 21.24% | 20.92% |
| Return on equity (ROE) | 18.37% | 18.15% | 20.37% | 21.22% | 20.60% | 19.50% | 18.88% | 19.89% | 21.82% | 25.52% | 28.28% | 29.42% | 28.34% | 27.81% | 25.54% | 23.13% | 18.67% | 18.13% | 17.79% | 17.49% |
West Pharmaceutical Services Inc's profitability ratios have shown a fluctuating trend over the reported periods.
1. Operating Return on Assets (Operating ROA): This ratio improved steadily from March 31, 2020, to June 30, 2022, peaking at 23.31%. However, it then declined to 15.67% by September 30, 2024. The ratio indicates the company's ability to generate operating profits from its assets, with a peak performance in mid-2022.
2. Return on Assets (ROA): A similar pattern is observed in the ROA, which increased from 11.60% on March 31, 2020, to 20.77% on March 31, 2022. Subsequently, it decreased to 13.52% by December 31, 2024. This ratio measures the company's overall efficiency in generating profits from its assets.
3. Return on Total Capital: This ratio also followed a similar trend, reaching a peak of 33.35% on March 31, 2022, before declining to 21.79% by December 31, 2024. It reflects the company's profitability in relation to all capital invested, showcasing strong performance in the early reporting periods.
4. Return on Equity (ROE): The ROE increased steadily from March 31, 2020, to June 30, 2022, peaking at 29.42%. However, it decreased significantly to 18.37% by December 31, 2024. The ROE measures the company's ability to generate profits relative to shareholders' equity, showing a diminishing performance in the later reported periods.
Overall, West Pharmaceutical Services Inc's profitability ratios indicate periods of strong performance, particularly in mid-2022, followed by some declines in profitability towards the end of the reporting period. Monitoring these ratios can help assess the company's operational efficiency and financial health.