West Pharmaceutical Services Inc (WST)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 484,600 | 853,900 | 894,300 | 762,600 | 615,500 |
| Short-term investments | US$ in thousands | — | — | — | — | 214,000 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 550,400 | 671,800 | 519,000 | 594,100 | 503,400 |
| Quick ratio | 0.88 | 1.27 | 1.72 | 1.28 | 1.65 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($484,600K
+ $—K
+ $—K)
÷ $550,400K
= 0.88
The quick ratio of West Pharmaceutical Services Inc has shown some fluctuations over the past five years, starting at 1.65 in 2020 and reaching 0.88 in 2024. This ratio indicates the company's ability to meet its short-term obligations with its most liquid assets.
In 2020 and 2022, the quick ratio was relatively strong at 1.65 and 1.72 respectively, suggesting the company had a comfortable level of liquid assets compared to its current liabilities. However, there was a notable decline in 2021 and 2024, with the ratio dropping to 1.28 and 0.88 respectively.
The decrease in the quick ratio in 2021 and 2024 may raise concerns about the company's short-term liquidity position and its ability to cover immediate financial obligations. It is essential for West Pharmaceutical Services Inc to closely monitor this ratio and ensure it maintains a healthy balance between liquid assets and short-term liabilities to support its financial stability and operations.
Peer comparison
Dec 31, 2024