West Pharmaceutical Services Inc (WST)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 2.88 | 3.70 | 2.93 | 2.73 | 3.10 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,936,400K ÷ $671,800K
= 2.88
The current ratio of West Pharmaceutical Services, Inc. has exhibited fluctuations over the past five years. In 2023, the current ratio dropped to 2.88 from 3.70 in 2022, indicating a decrease in the company's short-term liquidity position. Despite this decline, the current ratio remains above 1, implying that the company still possesses more current assets than current liabilities to meet its short-term obligations. The downward trend in the current ratio from 2022 to 2023 may raise concerns about the company's ability to cover its short-term obligations efficiently with its current assets. Further analysis of the components of current assets and liabilities is recommended to gain deeper insights into the underlying reasons for this trend.
Peer comparison
Dec 31, 2023