West Pharmaceutical Services Inc (WST)
Working capital 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 current assets | US$ in thousands | 1,538,100 | 1,936,400 | 1,919,500 | 1,742,000 | 1,373,700 |
| Total current liabilities | US$ in thousands | 550,400 | 671,800 | 519,000 | 594,100 | 503,400 |
| Working capital turnover | 2.93 | 2.33 | 2.06 | 2.47 | 2.47 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,893,200K ÷ ($1,538,100K – $550,400K)
= 2.93
The working capital turnover for West Pharmaceutical Services Inc has shown some fluctuations over the past five years. In 2020 and 2021, the company maintained a consistent working capital turnover ratio of 2.47. However, in 2022, there was a slight decrease to 2.06, indicating a decline in the efficiency of its working capital management.
The ratio improved in 2023 to 2.33, suggesting better utilization of working capital to generate sales. The most significant improvement was seen in 2024, with a notable increase to 2.93, indicating that the company efficiently converted its working capital into revenue during that year.
Overall, while there have been fluctuations in the working capital turnover ratio, the trend shows a general improvement in the efficiency of West Pharmaceutical Services Inc in utilizing its working capital to generate revenue over the five-year period.
Peer comparison
Dec 31, 2024