West Pharmaceutical Services Inc (WST)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 593,400 | 559,400 | 518,700 | 552,100 | 585,900 | 630,600 | 685,600 | 684,400 | 661,800 | 612,500 | 519,200 | 423,100 | 346,200 | 311,700 | 285,700 | 260,600 | 241,700 | 229,800 | 228,700 | 218,700 |
| Total stockholders’ equity | US$ in thousands | 2,881,000 | 2,868,200 | 2,746,700 | 2,776,200 | 2,684,900 | 2,470,800 | 2,424,400 | 2,326,200 | 2,335,400 | 2,202,300 | 2,032,600 | 1,829,000 | 1,854,500 | 1,718,900 | 1,606,300 | 1,490,200 | 1,573,200 | 1,487,600 | 1,445,100 | 1,369,500 |
| 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% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $593,400K ÷ $2,881,000K
= 20.60%
West Pharmaceutical Services, Inc.'s return on equity (ROE) has displayed a declining trend over the previous quarters, decreasing from 29.42% in Q1 2022 to 20.60% in Q4 2023. The company's ROE peaked in Q2 2022 at 28.28% before experiencing a consistent downward trajectory. This suggests a decreasing efficiency in generating profits from shareholders' equity over time. The management may need to investigate the factors contributing to this decline to ensure sustainable profitability and effective utilization of equity capital.
Peer comparison
Dec 31, 2023
Company name
Symbol
ROE
West Pharmaceutical Services Inc
WST
20.60%
Carlisle Companies Incorporated
CSL
27.13%