West Pharmaceutical Services Inc (WST)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 492,700 | 593,400 | 585,900 | 661,800 | 346,200 |
| Total assets | US$ in thousands | 3,643,400 | 3,829,500 | 3,616,800 | 3,313,800 | 2,793,800 |
| ROA | 13.52% | 15.50% | 16.20% | 19.97% | 12.39% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $492,700K ÷ $3,643,400K
= 13.52%
West Pharmaceutical Services Inc's return on assets (ROA) has shown a positive trend over the past five years. In December 31, 2020, the ROA was 12.39%, which increased to 19.97% by December 31, 2021. Although there was a slight decrease in ROA to 16.20% by December 31, 2022, the company was able to maintain a strong performance with an ROA of 15.50% by December 31, 2023. However, there was a further decrease to 13.52% by December 31, 2024.
Overall, West Pharmaceutical Services Inc has demonstrated consistent profitability in utilizing its assets to generate earnings. The ROA indicates how efficiently the company is using its assets to generate profits, and while there was a slight dip in 2024, the company's performance in the preceding years reflects strong asset management. Further analysis of the company's financial statements and industry benchmarks can provide additional insights into its asset utilization and overall financial health.
Peer comparison
Dec 31, 2024