West Pharmaceutical Services Inc (WST)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 584,400 | 593,300 | 611,400 | 669,000 | 703,500 | 744,600 | 698,900 | 738,000 | 767,300 | 744,800 | 791,800 | 775,700 | 766,800 | 692,800 | 616,000 | 514,100 | 418,000 | 374,100 | 341,100 | 311,800 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 21.79% | 21.56% | 23.73% | 24.96% | 24.42% | 25.96% | 25.45% | 26.58% | 28.58% | 30.14% | 32.66% | 33.35% | 32.83% | 31.46% | 30.31% | 28.11% | 22.54% | 21.76% | 21.24% | 20.92% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $584,400K ÷ ($—K + $2,682,300K)
= 21.79%
The return on total capital for West Pharmaceutical Services Inc has displayed a generally positive trend over the past several quarters, indicating the company's effective utilization of its overall capital resources to generate returns for its investors.
Starting at 20.92% in March 2020, the return on total capital consistently increased reaching its peak at 33.35% in March 2022, reflecting a period of strong performance and efficient capital deployment.
However, the ratio experienced a slight decline in the following quarters, dipping to 21.79% by December 2024. This decrease may suggest a potential decrease in the company's efficiency in generating returns on its total capital during this period.
Overall, the upward trend observed in the earlier quarters suggests that West Pharmaceutical Services Inc was able to effectively leverage its capital resources to generate favorable returns for its stakeholders, although there was a slight decline towards the end of the analyzed period. Further analysis and consideration of the company's financial strategies and operational performance may provide additional insights into the factors influencing these fluctuations in return on total capital.
Peer comparison
Dec 31, 2024