West Pharmaceutical Services Inc (WST)
Quick ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 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 | 439,100 | 396,000 | 326,700 | 265,500 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | 215,000 | 211,000 | 211,000 | 214,000 | 209,000 | — | — | — | — | — | — |
| Receivables | US$ in thousands | 512,000 | 519,100 | 534,400 | 513,400 | 507,400 | 485,300 | 528,400 | 498,700 | 489,000 | 476,400 | 480,500 | 465,700 | 385,300 | 373,000 | 340,600 | 333,000 | 319,300 | 316,100 | 330,800 | 318,200 |
| Total current liabilities | US$ in thousands | 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 | 341,600 | 335,000 | 313,200 | 301,100 |
| Quick ratio | 2.03 | 2.66 | 2.60 | 2.62 | 2.70 | 2.66 | 2.21 | 1.99 | 2.11 | 2.47 | 2.68 | 2.40 | 2.41 | 2.46 | 2.10 | 1.94 | 2.22 | 2.13 | 2.10 | 1.94 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($853,900K
+ $—K
+ $512,000K)
÷ $671,800K
= 2.03
West Pharmaceutical Services, Inc.'s quick ratio has been relatively stable over the past eight quarters, ranging from 2.18 to 2.90. The quick ratio measures the company's ability to cover its short-term liabilities with its most liquid assets, excluding inventory. A quick ratio higher than 1 indicates that the company can meet its short-term obligations without having to sell inventory.
The quick ratio for Q4 2023 is 2.24, which is slightly lower compared to the previous quarter but still indicates a strong liquidity position. The company has maintained a healthy quick ratio above 2 for the last two years, suggesting that it has ample liquid assets to meet its short-term liabilities. This consistency implies that West Pharmaceutical Services, Inc. has been managing its liquidity effectively and is well-positioned to cover its immediate financial obligations.
Peer comparison
Dec 31, 2023