West Pharmaceutical Services Inc (WST)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 72,800 | 206,700 | 208,800 | 252,900 | 255,000 |
| Total assets | US$ in thousands | 3,829,500 | 3,616,800 | 3,313,800 | 2,793,800 | 2,341,400 |
| Debt-to-assets ratio | 0.02 | 0.06 | 0.06 | 0.09 | 0.11 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $72,800K ÷ $3,829,500K
= 0.02
The debt-to-assets ratio of West Pharmaceutical Services, Inc. has exhibited a decreasing trend over the past five years, indicating a more conservative financial structure. The ratio declined from 0.11 in 2019 to 0.05 in 2023. This suggests that the company has reduced its reliance on debt financing relative to its total assets. A lower debt-to-assets ratio signifies a lower financial risk and better solvency, as the company has less debt compared to its asset base. It may also indicate that the company has strong internal funding sources or has been actively paying down its debt obligations. Overall, the decreasing debt-to-assets ratio reflects positively on the financial health and stability of West Pharmaceutical Services, Inc.
Peer comparison
Dec 31, 2023