West Pharmaceutical Services Inc (WST)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,893,200 | 2,949,800 | 2,886,900 | 2,831,600 | 2,146,900 |
| Total assets | US$ in thousands | 3,643,400 | 3,829,500 | 3,616,800 | 3,313,800 | 2,793,800 |
| Total asset turnover | 0.79 | 0.77 | 0.80 | 0.85 | 0.77 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $2,893,200K ÷ $3,643,400K
= 0.79
West Pharmaceutical Services Inc's total asset turnover has shown some fluctuations over the past five years. The ratio was 0.77 in December 31, 2020, increased to 0.85 in December 31, 2021, slightly decreased to 0.80 by December 31, 2022, dropped back to 0.77 by December 31, 2023, and then slightly rebounded to 0.79 as of December 31, 2024.
The total asset turnover ratio measures how efficiently the company is utilizing its assets to generate sales. A higher ratio indicates that the company is generating more revenue per dollar of assets. In this case, the fluctuations in West Pharmaceutical Services Inc's total asset turnover suggest some variability in how efficiently the company is utilizing its assets to generate sales over the years analyzed.
It would be advisable to further investigate the factors behind these fluctuations to assess the company's operational efficiency and financial performance accurately.
Peer comparison
Dec 31, 2024