West Pharmaceutical Services Inc (WST)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 484,600 | 853,900 | 894,300 | 762,600 | 615,500 |
| Short-term investments | US$ in thousands | — | — | — | — | 214,000 |
| Total current liabilities | US$ in thousands | 550,400 | 671,800 | 519,000 | 594,100 | 503,400 |
| Cash ratio | 0.88 | 1.27 | 1.72 | 1.28 | 1.65 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($484,600K
+ $—K)
÷ $550,400K
= 0.88
The cash ratio for West Pharmaceutical Services Inc has shown some fluctuations over the past five years. In December 2020, the cash ratio was at a healthy level of 1.65, indicating that the company had $1.65 in cash and cash equivalents for every $1 of current liabilities. However, by December 2024, the cash ratio had decreased to 0.88, implying a reduction in the company's ability to cover its short-term obligations with its available cash.
Overall, the trend in the cash ratio suggests a decline in West Pharmaceutical Services Inc's liquidity position over the period analyzed. It is important for the company to closely monitor its cash reserves and manage its short-term liabilities effectively to ensure financial stability and flexibility in the future.
Peer comparison
Dec 31, 2024