West Pharmaceutical Services Inc (WST)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,184,400 | 1,750,700 | 1,655,800 | 1,379,100 | 1,234,200 |
| Payables | US$ in thousands | 242,400 | 215,400 | 232,200 | 213,100 | 156,800 |
| Payables turnover | 9.01 | 8.13 | 7.13 | 6.47 | 7.87 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $2,184,400K ÷ $242,400K
= 9.01
The payables turnover ratio of West Pharmaceutical Services, Inc. has shown some fluctuations over the past five years. The ratio decreased from 7.87 in 2019 to 6.47 in 2020, indicating that the company took longer to pay its suppliers in 2020. However, in the subsequent years, the payables turnover improved, reaching 8.13 in 2022. This increase suggests that the company managed to pay its suppliers more efficiently in 2022 compared to 2020.
In 2023, the payables turnover ratio slightly decreased to 7.51. Although the ratio decreased from the previous year, it is still higher than in 2020 and 2021, indicating that West Pharmaceutical Services, Inc. continued to effectively manage its payables in 2023.
Overall, the trend in the payables turnover ratio for West Pharmaceutical Services, Inc. reflects fluctuating payment efficiency towards its suppliers over the years, with improvements seen in recent years compared to 2020. This ratio is essential for assessing the company's liquidity and management of its accounts payable obligations.
Peer comparison
Dec 31, 2023