West Pharmaceutical Services Inc (WST)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 38.52% | 38.14% | 38.18% | 38.93% | 39.34% | 40.35% | 40.80% | 41.23% | 41.50% | 40.52% | 39.37% | 37.61% | 35.86% | 34.97% | 34.16% | 33.15% | 32.92% | 32.69% | 32.45% | 31.96% |
| Operating profit margin | 23.06% | 22.10% | 22.84% | 24.25% | 25.42% | 27.07% | 26.75% | 26.59% | 26.55% | 25.53% | 23.88% | 21.31% | 19.00% | 18.17% | 17.36% | 16.63% | 16.12% | 15.87% | 15.72% | 14.76% |
| Pretax margin | 24.41% | 23.17% | 21.89% | 23.20% | 24.26% | 25.78% | 27.22% | 27.20% | 27.14% | 26.33% | 24.65% | 21.95% | 19.55% | 18.73% | 17.72% | 16.87% | 16.34% | 16.03% | 16.02% | 15.11% |
| Net profit margin | 20.24% | 19.17% | 18.12% | 19.14% | 20.29% | 21.66% | 23.41% | 23.74% | 23.36% | 22.85% | 20.59% | 18.23% | 16.17% | 15.35% | 14.72% | 13.80% | 13.14% | 12.83% | 12.94% | 12.53% |
West Pharmaceutical Services, Inc. has maintained relatively stable profitability ratios over the quarters analyzed. The gross profit margin has seen a slight decrease from Q4 2022 to Q4 2023, indicating a small decline in the company's efficiency in generating revenue after accounting for the cost of goods sold.
The operating profit margin has also shown a downward trend over the quarters, suggesting a decrease in operating efficiency and profitability. This could be attributed to increased operating expenses or other factors impacting the company's profitability at the operating level.
The pretax margin, which represents the company's profitability before taxes, has fluctuated over the quarters, with a notable decrease in Q2 2022 followed by a gradual recovery. This may indicate variability in the company's ability to manage operating expenses and other costs before accounting for taxes.
Lastly, the net profit margin, indicating the company's bottom-line profitability after all expenses have been accounted for, has exhibited a consistent decrease from Q4 2022 to Q4 2023. This decline suggests that the company's net profitability has been under pressure, possibly due to a combination of factors affecting revenue and expenses.
Overall, while West Pharmaceutical Services, Inc. has maintained profitability throughout the quarters analyzed, some declining trends in profitability ratios indicate potential areas of concern that may require further investigation to ensure sustained financial health and performance.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 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% | 10.32% | 10.57% | 10.77% | 10.74% |
| Return on total capital | 24.53% | 22.70% | 21.52% | 22.70% | 24.50% | 28.36% | 30.61% | 31.27% | 30.55% | 29.58% | 27.57% | 24.86% | 20.26% | 19.70% | 18.94% | 18.73% | 16.91% | 17.38% | 17.31% | 16.66% |
| Return on equity (ROE) | 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% | 15.36% | 15.45% | 15.83% | 15.97% |
West Pharmaceutical Services, Inc. has shown a consistent trend of strong profitability ratios over the past eight quarters. The operating return on assets (Operating ROA) has ranged from 18.47% to 23.79% during this period, indicating the company's ability to generate earnings from its assets. The return on assets (ROA) has been relatively stable, fluctuating between 14.14% and 16.20%, demonstrating the company's efficiency in utilizing its assets to generate profits.
Furthermore, the return on total capital has varied between 23.27% and 30.65%, highlighting West Pharmaceutical Services' effectiveness in generating returns from both equity and debt capital. The return on equity (ROE) has ranged from 18.88% to 29.42%, showcasing the company's capacity to generate profits for its shareholders.
Overall, West Pharmaceutical Services, Inc. has displayed consistent and robust profitability ratios over the past eight quarters, indicating strong operational performance and efficient management of resources.