West Pharmaceutical Services Inc (WST)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,931,600 | 2,918,300 | 2,862,000 | 2,884,600 | 2,888,000 | 2,911,600 | 2,929,000 | 2,882,500 | 2,833,200 | 2,681,100 | 2,521,700 | 2,320,600 | 2,141,400 | 2,030,200 | 1,941,400 | 1,887,900 | 1,839,900 | 1,791,800 | 1,767,400 | 1,745,200 |
| Property, plant and equipment | US$ in thousands | 1,413,300 | 1,311,600 | 1,261,300 | 1,215,200 | 1,158,300 | 1,069,000 | 1,077,400 | 1,065,900 | 1,057,500 | 1,006,500 | 973,100 | 930,800 | 943,200 | 883,400 | 839,800 | 828,300 | 839,300 | 812,100 | 822,900 | 814,700 |
| Fixed asset turnover | 2.07 | 2.22 | 2.27 | 2.37 | 2.49 | 2.72 | 2.72 | 2.70 | 2.68 | 2.66 | 2.59 | 2.49 | 2.27 | 2.30 | 2.31 | 2.28 | 2.19 | 2.21 | 2.15 | 2.14 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,931,600K ÷ $1,413,300K
= 2.07
West Pharmaceutical Services, Inc.'s fixed asset turnover has been relatively stable over the past eight quarters, ranging from 2.09 to 2.72. The fixed asset turnover ratio measures the efficiency of the company in generating sales revenue from its investment in fixed assets. A higher ratio indicates that the company is utilizing its fixed assets more effectively to generate sales.
In Q4 2022, the fixed asset turnover was at its peak of 2.72, indicating that the company generated $2.72 in sales for every dollar invested in fixed assets during that quarter. However, in subsequent quarters, the ratio declined slightly but remained above 2, reflecting the company's continued efficiency in utilizing its fixed assets.
It is worth noting that the trend in fixed asset turnover has been generally positive, indicating that West Pharmaceutical Services, Inc. has been able to maintain or improve its efficiency in generating sales from its fixed assets over time. This consistency suggests that the company has effective asset management strategies in place.
Overall, the fixed asset turnover ratios show a stable and efficient utilization of fixed assets by West Pharmaceutical Services, Inc.
Peer comparison
Dec 31, 2023