West Pharmaceutical Services Inc (WST)
Receivables 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 |
| Receivables | US$ in thousands | 512,000 | 519,100 | 534,400 | 513,400 | 507,400 | 485,300 | 528,400 | 498,700 | 489,000 | 476,400 | 480,500 | 465,700 | 385,300 | 373,000 | 340,600 | 333,000 | 319,300 | 316,100 | 330,800 | 318,200 |
| Receivables turnover | 5.73 | 5.62 | 5.36 | 5.62 | 5.69 | 6.00 | 5.54 | 5.78 | 5.79 | 5.63 | 5.25 | 4.98 | 5.56 | 5.44 | 5.70 | 5.67 | 5.76 | 5.67 | 5.34 | 5.48 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $2,931,600K ÷ $512,000K
= 5.73
The receivables turnover ratio for West Pharmaceutical Services, Inc. can be calculated by dividing net credit sales by the average accounts receivable balance. A higher turnover ratio indicates that the company is collecting its accounts receivable more quickly.
Based on the provided data, the receivables turnover ratio for West Pharmaceutical Services, Inc. has shown fluctuations over the past eight quarters. The average turnover in the last year was around 5.68, indicating that, on average, the company collected its accounts receivable approximately 5.68 times during the year.
In Q4 2023, the receivables turnover ratio was 5.76, slightly higher than the 5.69 in Q4 2022. This suggests the company was slightly more efficient in collecting its accounts receivable in Q4 2023 compared to the same quarter the previous year.
Overall, the trend in West Pharmaceutical Services, Inc.'s receivables turnover indicates a relatively stable collection efficiency, with minor fluctuations in the ratio over the examined periods.
Peer comparison
Dec 31, 2023