West Pharmaceutical Services Inc (WST)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 2.79 | 3.00 | 2.34 | 2.61 | 2.88 | 3.70 | 3.66 | 3.62 | 3.70 | 3.80 | 3.13 | 2.89 | 2.93 | 2.86 | 3.13 | 2.75 | 2.73 | 2.77 | 2.96 | 2.84 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,538,100K ÷ $550,400K
= 2.79
West Pharmaceutical Services Inc has shown a fluctuating trend in its current ratio over the past few years, ranging from 2.34 to 3.80. The current ratio measures the company's ability to meet its short-term obligations with its current assets. A higher current ratio typically indicates a better liquidity position, as the company has more current assets to cover its current liabilities.
The current ratio increased significantly from June 30, 2021, where it was 3.13, reaching its peak at 3.80 on September 30, 2022. This indicates that the company had a strong ability to cover its short-term obligations at that point in time. However, the ratio decreased slightly in the following quarters, stabilizing around 3.00 in December 31, 2024.
Overall, despite some fluctuations, West Pharmaceutical Services Inc has maintained a current ratio above 2.00 throughout the period, suggesting a generally healthy liquidity position. It will be important for the company to continue monitoring its current ratio to ensure it has enough current assets to cover its current liabilities effectively.
Peer comparison
Dec 31, 2024