West Pharmaceutical Services Inc (WST)
Quick 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 | 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 | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Quick 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
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($484,600K
+ $—K
+ $—K)
÷ $550,400K
= 0.88
Based on the provided data, West Pharmaceutical Services Inc's quick ratio has shown fluctuations over the analyzed period, ranging from 0.70 to 1.72. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that the company has more than enough liquid assets to cover its current liabilities.
It is observed that the quick ratio generally remained above 1 during the period, suggesting a healthy liquidity position for the company. However, there were periods where the quick ratio dipped below 1, indicating a potential liquidity strain to meet short-term obligations. Notably, the quick ratio peaked at 1.72 on December 31, 2022, indicating a strong liquidity position at that point in time.
The declining trend in the quick ratio from 1.72 on December 31, 2022, to 0.88 on December 31, 2024, may raise concerns about the company's ability to cover its short-term liabilities with its current liquid assets. Further analysis of the company's current assets and liabilities is recommended to understand the reasons behind the fluctuating quick ratio and whether there are any potential liquidity risks to be addressed.
Peer comparison
Dec 31, 2024