West Pharmaceutical Services Inc (WST)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 492,700 | 499,600 | 524,900 | 568,700 | 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 |
| Total stockholders’ equity | US$ in thousands | 2,682,300 | 2,752,100 | 2,576,800 | 2,680,600 | 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 |
| ROE | 18.37% | 18.15% | 20.37% | 21.22% | 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% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $492,700K ÷ $2,682,300K
= 18.37%
West Pharmaceutical Services Inc's return on equity (ROE) has shown a generally increasing trend from 17.49% in March 2020 to a peak of 29.42% in March 2022. During this period, the company's ROE displayed strong growth, indicating its ability to generate higher returns on shareholders' equity. However, after reaching its peak in March 2022, the ROE started to decline gradually, falling to 18.37% by December 2024.
The fluctuation in ROE could be attributed to various factors such as changes in profitability, leverage, or efficiency of operations. It is important for investors and stakeholders to monitor the company's ROE over time to assess its financial performance and management's ability to utilize equity effectively in generating profits. The recent downward trend in ROE may warrant further investigation to understand the underlying reasons and assess the company's sustainable profitability and growth prospects.
Peer comparison
Dec 31, 2024