West Pharmaceutical Services Inc (WST)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 2,881,000 | 2,684,900 | 2,335,400 | 1,854,500 | 1,573,200 |
| Debt-to-equity ratio | 0.03 | 0.08 | 0.09 | 0.14 | 0.16 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $72,800K ÷ $2,881,000K
= 0.03
The debt-to-equity ratio of West Pharmaceutical Services, Inc. has exhibited a declining trend over the past five years, indicating that the company has been relying less on debt financing relative to equity. This trend suggests that the company has been gradually reducing its financial leverage and potentially lowering its risk of financial distress associated with high debt levels. A decreasing debt-to-equity ratio may also signal improved financial stability and a stronger financial position, as the company relies more on equity financing which is generally considered less risky than debt. Overall, the declining trend in West Pharmaceutical Services, Inc.'s debt-to-equity ratio implies a positive development in the company's capital structure and financial health over the years.
Peer comparison
Dec 31, 2023