West Pharmaceutical Services Inc (WST)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 2,881,000 | 2,868,200 | 2,746,700 | 2,776,200 | 2,684,900 | 2,470,800 | 2,424,400 | 2,326,200 | 2,335,400 | 2,202,300 | 2,032,600 | 1,829,000 | 1,854,500 | 1,718,900 | 1,606,300 | 1,490,200 | 1,573,200 | 1,487,600 | 1,445,100 | 1,369,500 |
| Debt-to-capital ratio | 0.02 | 0.05 | 0.07 | 0.07 | 0.07 | 0.08 | 0.08 | 0.08 | 0.08 | 0.09 | 0.11 | 0.12 | 0.12 | 0.13 | 0.14 | 0.15 | 0.14 | 0.12 | 0.12 | 0.12 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $72,800K ÷ ($72,800K + $2,881,000K)
= 0.02
The debt-to-capital ratio of West Pharmaceutical Services, Inc. has remained relatively stable over the past eight quarters, ranging between 0.07 and 0.10. This indicates that the company has maintained a conservative approach to capital structure, with a low proportion of debt relative to its total capital. A lower debt-to-capital ratio suggests that West Pharmaceutical Services relies more on equity financing rather than debt to fund its operations and growth. This can be seen as a positive indicator of financial stability and lower financial risk for the company. Additionally, the consistent ratio over the quarters implies a consistent approach to managing its debt levels and capital structure, which may be viewed favorably by investors and creditors.
Peer comparison
Dec 31, 2023