West Pharmaceutical Services Inc (WST)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 484,600 | 490,900 | 446,200 | 601,800 | 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 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | 215,000 | 211,000 | 211,000 | 214,000 | 209,000 | — | — |
| 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 |
| Cash ratio | 0.88 | 0.95 | 0.70 | 0.93 | 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 |
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 of West Pharmaceutical Services Inc has shown fluctuations over the periods provided in the dataset. The cash ratio measures the company's ability to cover its short-term liabilities using its cash and cash equivalents.
From March 31, 2020, to December 31, 2021, the cash ratio generally improved, indicating the company had more cash on hand relative to its current liabilities. This suggests a stronger liquidity position and ability to meet its short-term obligations comfortably.
However, from March 31, 2022, to December 31, 2024, the cash ratio declined gradually. This downward trend could indicate that the company's cash reserves were not increasing at the same rate as its short-term liabilities, potentially signaling a decrease in liquidity or an increase in short-term obligations.
The highest cash ratio reported was 1.72 on December 31, 2022, indicating that West Pharmaceutical Services Inc had $1.72 in cash and cash equivalents for every dollar of current liabilities. On the contrary, the lowest cash ratio was 0.70 on June 30, 2024, suggesting the company had a lower cash buffer relative to its short-term obligations during that period.
Overall, it is essential for investors and stakeholders to monitor the cash ratio trend of West Pharmaceutical Services Inc to understand its liquidity position and ability to meet short-term financial commitments.
Peer comparison
Dec 31, 2024