West Pharmaceutical Services Inc (WST)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,918,500 | 2,886,900 | 2,831,600 | 2,146,900 | 1,839,900 |
| Total current assets | US$ in thousands | 1,936,400 | 1,919,500 | 1,742,000 | 1,373,700 | 1,058,700 |
| Total current liabilities | US$ in thousands | 671,800 | 519,000 | 594,100 | 503,400 | 341,600 |
| Working capital turnover | 2.31 | 2.06 | 2.47 | 2.47 | 2.57 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,918,500K ÷ ($1,936,400K – $671,800K)
= 2.31
West Pharmaceutical Services, Inc.'s working capital turnover ratio has shown some variability over the past five years, ranging from 2.06 to 2.57. The ratio indicates how well the company is utilizing its working capital to generate revenue. A higher ratio suggests a more efficient management of working capital.
In 2023, the working capital turnover increased to 2.33 from 2.06 in 2022, indicating an improvement in efficiency in converting working capital into sales. However, it is still below the ratio of 2.57 in 2019, which was the highest in the last five years, suggesting a potential decrease in efficiency over the period.
Overall, the trend in working capital turnover for West Pharmaceutical Services, Inc. has shown some fluctuations but has generally remained relatively stable, hovering around the 2.00 to 2.50 range. Further analysis of the company's working capital management practices and revenue generation strategies may provide insights into the factors influencing these trends.
Peer comparison
Dec 31, 2023