West Pharmaceutical Services Inc (WST)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 593,400 | 585,900 | 661,800 | 346,200 | 241,700 |
| Total assets | US$ in thousands | 3,829,500 | 3,616,800 | 3,313,800 | 2,793,800 | 2,341,400 |
| ROA | 15.50% | 16.20% | 19.97% | 12.39% | 10.32% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $593,400K ÷ $3,829,500K
= 15.50%
Over the past five years, West Pharmaceutical Services, Inc.'s return on assets (ROA) has demonstrated a fluctuating trend. In 2019, the company's ROA stood at 10.32%, showing improvement to 12.39% in 2020. Subsequently, there was a significant increase in 2021, with the ROA reaching 19.97%, indicating a notable efficiency in generating profits relative to its total assets. However, there was a slight decline in ROA in 2022 to 16.20% and a further decrease in 2023 to 15.50%.
The decreasing trend in the ROA in the most recent years may suggest challenges in asset utilization efficiency or profitability compared to the prior year. It is important for investors and stakeholders to further investigate the underlying reasons behind this performance to assess the company's operational effectiveness and management of its assets.
Peer comparison
Dec 31, 2023