West Pharmaceutical Services Inc (WST)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 2,682,300 | 2,881,000 | 2,684,900 | 2,335,400 | 1,854,500 |
| ROE | 18.37% | 20.60% | 21.82% | 28.34% | 18.67% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $492,700K ÷ $2,682,300K
= 18.37%
West Pharmaceutical Services Inc's return on equity (ROE) has shown a positive trend over the past five years. The ROE has increased from 18.67% as of December 31, 2020, to 28.34% as of December 31, 2021, indicating a significant improvement in the company's ability to generate profits from shareholders' equity.
However, there was a slight decline in ROE to 21.82% as of December 31, 2022, followed by a further decrease to 20.60% as of December 31, 2023. This could suggest some challenges in maintaining the high level of profitability relative to equity.
As of December 31, 2024, the ROE stands at 18.37%, which is lower than the peak in 2021 but still above the initial level in 2020. This indicates that the company continues to generate a reasonable return for its shareholders, although there has been some moderation in profitability.
Overall, the fluctuation in ROE over the years may reflect changes in the company's financial performance, efficiency in utilizing equity, and overall market conditions. It is important to further investigate the factors driving these fluctuations to assess the company's financial health and sustainability in the long term.
Peer comparison
Dec 31, 2024