West Pharmaceutical Services Inc (WST)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.36 | 1.33 | 1.35 | 1.42 | 1.51 |
Based on the provided data for West Pharmaceutical Services Inc, the solvency ratios indicate a strong financial position with low levels of debt relative to assets, capital, and equity.
The Debt-to-assets ratio has consistently been reported as 0.00 over the years, which suggests that the company has no debt in relation to its total assets. This indicates a low level of financial risk and a high level of solvency.
Similarly, the Debt-to-capital ratio and Debt-to-equity ratio have also been consistently reported as 0.00 across the years, confirming the company's conservative financial structure with no debt in relation to its capital or equity.
The Financial leverage ratio has shown a declining trend from 1.51 in 2020 to 1.36 in 2024. Although this ratio measures the company's dependency on debt financing, the decreasing trend indicates that the company is relying less on debt over time to finance its operations, which is a positive sign for solvency and financial stability.
Overall, based on the solvency ratios provided, West Pharmaceutical Services Inc appears to have a strong financial position with minimal debt obligations and a healthy balance sheet structure.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 196.17 | 78.53 | 97.13 | 107.35 | 62.15 |
West Pharmaceutical Services Inc has shown a strong interest coverage ratio over the past five years. The interest coverage ratio indicates the company's ability to cover its interest expenses with its operating income.
In 2020, the interest coverage ratio was 62.15, indicating that the company generated 62.15 times the operating income to cover its interest expenses. This ratio improved significantly in 2021 to 107.35, further demonstrating the company's ability to meet its interest obligations comfortably.
Although there was a slight decrease in the interest coverage ratio in 2022 to 97.13 and in 2023 to 78.53, both ratios still reflect a healthy ability to cover interest payments. The most notable increase was seen in 2024, with an interest coverage ratio of 196.17, showcasing a substantial improvement in the company's ability to handle its interest expenses efficiently.
Overall, the trend in West Pharmaceutical Services Inc's interest coverage ratios over the past five years indicates a consistently strong financial position and ability to meet its interest obligations comfortably.