West Pharmaceutical Services Inc (WST)
Working capital turnover
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 2,893,100 | 2,876,300 | 2,876,800 | 2,928,600 | 2,949,800 | 2,926,500 | 2,866,000 | 2,883,500 | 2,886,900 | 2,909,000 | 2,928,600 | 2,880,900 | 2,831,600 | 2,681,000 | 2,522,500 | 2,326,100 | 2,146,900 | 2,037,300 | 1,945,400 | 1,887,900 |
| Total current assets | US$ in thousands | 1,538,100 | 1,550,600 | 1,483,000 | 1,692,900 | 1,936,400 | 1,972,300 | 1,874,200 | 1,937,200 | 1,919,500 | 1,733,600 | 1,771,100 | 1,690,500 | 1,742,000 | 1,598,300 | 1,477,000 | 1,327,000 | 1,373,700 | 1,238,300 | 1,110,600 | 977,500 |
| Total current liabilities | US$ in thousands | 550,400 | 516,500 | 633,700 | 648,400 | 671,800 | 533,500 | 511,600 | 534,900 | 519,000 | 456,700 | 565,100 | 584,800 | 594,100 | 558,600 | 472,600 | 482,800 | 503,400 | 447,700 | 375,200 | 344,400 |
| Working capital turnover | 2.93 | 2.78 | 3.39 | 2.80 | 2.33 | 2.03 | 2.10 | 2.06 | 2.06 | 2.28 | 2.43 | 2.61 | 2.47 | 2.58 | 2.51 | 2.76 | 2.47 | 2.58 | 2.65 | 2.98 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,893,100K ÷ ($1,538,100K – $550,400K)
= 2.93
The working capital turnover ratio for West Pharmaceutical Services Inc has fluctuated over the past few years, ranging from 2.06 to 3.39. This ratio calculates how efficiently the company is utilizing its working capital to generate sales revenue. A higher ratio indicates that the company is effectively using its working capital to support sales growth.
It is observed that the working capital turnover ratio peaked at 3.39 on June 30, 2024, suggesting an efficient utilization of working capital during that period. However, there have been periods where the ratio dropped to as low as 2.06, indicating a less efficient utilization of working capital.
Overall, the trend in the working capital turnover ratio for West Pharmaceutical Services Inc shows some fluctuation, with variations in the company's ability to convert its working capital into sales. Further analysis of the underlying factors influencing these fluctuations would provide more insights into the company's operational efficiency and financial performance.
Peer comparison
Dec 31, 2024