West Pharmaceutical Services Inc (WST)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,829,500 | 3,616,800 | 3,313,800 | 2,793,800 | 2,341,400 |
| Total stockholders’ equity | US$ in thousands | 2,881,000 | 2,684,900 | 2,335,400 | 1,854,500 | 1,573,200 |
| Financial leverage ratio | 1.33 | 1.35 | 1.42 | 1.51 | 1.49 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,829,500K ÷ $2,881,000K
= 1.33
The financial leverage ratio for West Pharmaceutical Services, Inc. has shown a decreasing trend from 1.49 in 2019 to 1.33 in 2023. This indicates that the company has been gradually decreasing its reliance on debt financing to fund its operations and growth. A lower financial leverage ratio suggests that the company has a lower proportion of debt in its capital structure compared to equity, which may signify a lower financial risk and greater financial stability. Overall, the declining trend in the financial leverage ratio over the years reflects a more conservative approach to capital structure management by West Pharmaceutical Services, Inc.
Peer comparison
Dec 31, 2023