West Pharmaceutical Services Inc (WST)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 1,893,300 | 1,871,900 | 1,848,800 | 1,840,500 | 1,820,600 | 1,813,400 | 1,773,200 | 1,760,600 | 1,750,700 | 1,734,300 | 1,733,700 | 1,692,400 | 1,655,800 | 1,594,700 | 1,529,800 | 1,453,400 | 1,379,100 | 1,327,400 | 1,282,300 | 1,262,000 |
| Inventory | US$ in thousands | 377,000 | 401,200 | 419,200 | 429,900 | 434,700 | 431,800 | 449,400 | 447,000 | 414,800 | 413,100 | 411,600 | 416,500 | 378,400 | 353,800 | 345,200 | 310,200 | 321,300 | 294,900 | 274,800 | 251,000 |
| Inventory turnover | 5.02 | 4.67 | 4.41 | 4.28 | 4.19 | 4.20 | 3.95 | 3.94 | 4.22 | 4.20 | 4.21 | 4.06 | 4.38 | 4.51 | 4.43 | 4.69 | 4.29 | 4.50 | 4.67 | 5.03 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,893,300K ÷ $377,000K
= 5.02
Inventory turnover is a crucial financial ratio that reflects how efficiently a company manages its inventory. For West Pharmaceutical Services Inc, the inventory turnover has shown fluctuations over the years.
In the period from March 31, 2020, to December 31, 2024, the inventory turnover ranged from a low of 3.94 to a high of 5.03. Generally, a higher inventory turnover indicates that the company is selling its inventory more quickly, which can be seen as a positive sign.
Analyzing the trend, we observe that the inventory turnover reached its peak at 5.03 on December 31, 2024, suggesting efficient inventory management. However, there have been fluctuations in the ratio, indicating possible challenges in managing inventory levels effectively.
It is important for West Pharmaceutical Services Inc to closely monitor its inventory turnover and ensure that it strikes the right balance between having enough inventory to meet demand and avoiding excess inventory that may tie up resources. Further analysis would be needed to understand the factors contributing to the fluctuations in inventory turnover and to take appropriate actions to optimize inventory management.
Peer comparison
Dec 31, 2024
Dec 31, 2024