West Pharmaceutical Services Inc (WST)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 2,881,000 | 2,684,900 | 2,335,400 | 1,854,500 | 1,573,200 |
| ROE | 20.60% | 21.82% | 28.34% | 18.67% | 15.36% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $593,400K ÷ $2,881,000K
= 20.60%
West Pharmaceutical Services, Inc.'s return on equity (ROE) has shown a positive trend over the past five years. The company's ROE increased from 15.36% in 2019 to 20.60% in 2023, indicating a steady improvement in the company's ability to generate profits from shareholders' equity.
The ROE of 28.34% in 2021 was the highest in the period under review, reflecting strong performance in utilizing equity to generate profits. Despite a slight decline in ROE in 2022 and 2023, the company has maintained a relatively high level of return compared to previous years.
Overall, West Pharmaceutical Services, Inc. has demonstrated consistent profitability and efficiency in utilizing shareholders' equity to generate returns for the company. The trend indicates that the company has been effectively managing its assets and liabilities to deliver value to its shareholders.
Peer comparison
Dec 31, 2023