West Pharmaceutical Services Inc (WST)
Cash ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 853,900 | 898,600 | 796,300 | 886,300 | 894,300 | 729,000 | 718,500 | 667,700 | 762,600 | 688,000 | 576,200 | 483,700 | 615,500 | 519,400 | 445,900 | 335,300 | 439,100 | 396,000 | 326,700 | 265,500 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | 215,000 | 211,000 | 211,000 | 214,000 | 209,000 | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 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 | 341,600 | 335,000 | 313,200 | 301,100 |
| Cash ratio | 1.27 | 1.68 | 1.56 | 1.66 | 1.72 | 1.60 | 1.27 | 1.14 | 1.28 | 1.62 | 1.67 | 1.44 | 1.65 | 1.63 | 1.19 | 0.97 | 1.29 | 1.18 | 1.04 | 0.88 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($853,900K
+ $—K)
÷ $671,800K
= 1.27
The cash ratio of West Pharmaceutical Services, Inc. has shown fluctuations over the eight quarters reported. The ratio measures the company's ability to cover its current liabilities with its cash and cash equivalents.
In Q4 2023, the cash ratio stood at 1.47, indicating that the company had $1.47 in cash and cash equivalents for every dollar of current liabilities. This was a decrease from the previous quarter, Q3 2023, where the ratio was 1.91. The decline suggests that the company had slightly less liquidity to cover its short-term obligations in Q4 2023 compared to the previous quarter.
Looking at the trend over the past eight quarters, the cash ratio has fluctuated, with Q3 2022 and Q4 2022 showing the highest ratios at 1.92 and 1.83, respectively. Conversely, Q1 2022 had the lowest ratio at 1.33.
Overall, the cash ratio of West Pharmaceutical Services, Inc. has varied over the quarters analyzed, and it is important for investors and analysts to continue monitoring the company's liquidity position to ensure its ability to meet short-term obligations.
Peer comparison
Dec 31, 2023