Item 6. SELECTED FINANCIAL DATA

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Item 6. SELECTED FINANCIAL DATA

FIVE-YEAR SUMMARY

West Pharmaceutical Services, Inc. and Subsidiaries


(in millions, except per share data)	2020			2019			2018			2017			2016
SUMMARY OF OPERATIONS
Net sales (1)	$	2,146.9		$	1,839.9		$	1,717.4		$	1,599.1		$	1,509.1
Operating profit †	406.9			296.6			240.3			225.8			195.2
Net income	346.2			241.7			206.9			150.7			143.6
Net income per share:
Basic (2)	$	4.68		$	3.27		$	2.80		$	2.04		$	1.96
Diluted (3)	4.57			3.21			2.74			1.99			1.91
Weighted average common shares outstanding	73.9			74.0			73.9			73.9			73.3
Weighted average shares assuming dilution	75.8			75.4			75.4			75.8			75.0
Dividends declared per common share	$	0.66		$	0.62		$	0.58		$	0.54		$	0.50

YEAR-END FINANCIAL POSITION
Cash and cash equivalents	$	615.5		$	439.1		$	337.4		$	235.9		$	203.0
Working capital	870.3			717.1			610.7			464.0			400.9
Total assets	2,793.8			2,341.4			1,978.9			1,862.8			1,716.7
Total invested capital:
Total debt	255.2			257.3			196.1			197.0			228.6
Total equity	1,854.5			1,573.2			1,396.3			1,279.9			1,117.5
Total invested capital	$	2,109.7		$	1,830.5		$	1,592.4		$	1,476.9		$	1,346.1

PERFORMANCE MEASUREMENTS (4)
Gross margin (a)	35.8		%	32.9		%	31.8		%	32.1		%	33.2		%
Operating profitability (b) †	19.0		%	16.1		%	14.0		%	14.1		%	12.9		%
Effective tax rate (5)	18.1		%	20.2		%	17.2		%	36.4		%	28.7		%
Return on invested capital (c) †	16.9		%	13.8		%	13.0		%	10.2		%	10.4		%
Net debt-to-total invested capital (d)	N/A			N/A			N/A			N/A			2.2		%
Research and development expenses	$	46.9		$	38.9		$	40.3		$	39.1		$	36.8
Operating cash flow	472.5			367.2			288.6			263.3			219.4
Stock price range	$305-124.53			$152.12-93.08			$125.09-82.74			$103.36-77.97			$86.50-53.88

(1) Results for reporting periods beginning after January 1, 2018 are presented under Accounting Standards Codification ("ASC") 606, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for those periods.

(2) Based on weighted average common shares outstanding.

(3) Based on weighted average shares, assuming dilution.

(4) Performance measurements represent indicators commonly used in the financial community. Certain of the following performance measures are not in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) and should not be used as a substitute for the comparable U.S. GAAP financial measures. The non-U.S. GAAP financial measures are included as management uses them in evaluating our results of operations and believes that this information provides users with a valuable insight into our overall performance and financial position.

(a) Net sales minus cost of goods and services sold, including applicable depreciation and amortization, divided by net sales.

(b) Operating profit divided by net sales.

(d) Net debt (total debt less cash and cash equivalents) divided by total invested capital less cash and cash equivalents.

(5) As a result of the Tax Cuts and Jobs Act (the “2017 Tax Act”), the federal statutory rate was reduced from 35.0% to 21.0% effective for tax years beginning after December 31, 2017. Please refer to Note 17, Income Taxes, for further discussion of the 2017 Tax Act.

† Reflects our adoption of the guidance issued by the Financial Accounting Standards Board (“FASB”) regarding the presentation of net periodic pension and postretirement benefit cost (net benefit cost).

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