West Pharmaceutical Services Inc (WST)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,918,500 | 2,886,900 | 2,831,600 | 2,146,900 | 1,839,900 |
| Property, plant and equipment | US$ in thousands | 1,413,300 | 1,158,300 | 1,057,500 | 943,200 | 839,300 |
| Fixed asset turnover | 2.07 | 2.49 | 2.68 | 2.28 | 2.19 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,918,500K ÷ $1,413,300K
= 2.07
The fixed asset turnover ratio for West Pharmaceutical Services, Inc. has shown variability over the past five years. The ratio measures how efficiently the company generates revenue from its investment in fixed assets.
In 2023, the fixed asset turnover ratio decreased to 2.09 from 2.49 in 2022. This decline may indicate that the company was less efficient in utilizing its fixed assets to generate sales during the year.
However, when comparing 2023 to 2021 and 2019, the ratio remains relatively stable around the range of 2.09 to 2.19. This suggests that the company has maintained a consistent level of efficiency in turning its fixed assets into revenue over these years.
In 2022, the ratio peaked at 2.68, indicating a particularly efficient use of fixed assets to generate sales compared to the other years. This could signal improved operational performance or a strategic shift in asset management during that period.
Overall, the fluctuation in West Pharmaceutical Services, Inc.'s fixed asset turnover ratio over the past five years indicates some variability in the company's ability to efficiently generate revenue from its fixed asset base. Further analysis of the company's operational activities and investment decisions may be needed to fully understand the factors driving these fluctuations.
Peer comparison
Dec 31, 2023