West Pharmaceutical Services Inc (WST)
Debt-to-assets 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 72,800 | 152,100 | 205,600 | 206,100 | 206,700 | 207,200 | 207,800 | 208,300 | 208,800 | 209,900 | 251,800 | 252,300 | 252,900 | 253,400 | 253,900 | 254,400 | 255,000 | 195,100 | 196,000 | 195,500 |
| Total assets | US$ in thousands | 3,829,500 | 3,754,700 | 3,669,600 | 3,723,600 | 3,616,800 | 3,316,800 | 3,361,700 | 3,294,700 | 3,313,800 | 3,142,600 | 2,933,500 | 2,739,700 | 2,793,800 | 2,582,800 | 2,392,300 | 2,246,500 | 2,341,400 | 2,174,000 | 2,123,200 | 2,036,200 |
| Debt-to-assets ratio | 0.02 | 0.04 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.06 | 0.07 | 0.09 | 0.09 | 0.09 | 0.10 | 0.11 | 0.11 | 0.11 | 0.09 | 0.09 | 0.10 |
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 shown relatively stable levels over the past eight quarters. The ratio ranges between 0.05 to 0.08 during this period, indicating that the company maintains a conservative approach towards financing its operations using debt.
A lower debt-to-assets ratio, such as 0.05 or 0.06, suggests that a smaller portion of the company's assets is financed by debt, which can indicate a strong financial position and lower risk. On the other hand, a higher ratio, such as 0.08, might imply a higher level of debt relative to assets, potentially increasing financial risk.
Overall, the consistent but relatively low debt-to-assets ratio of West Pharmaceutical Services, Inc. suggests that the company has a prudent debt management strategy, balancing the use of debt financing with maintaining a solid asset base.
Peer comparison
Dec 31, 2023