West Pharmaceutical Services Inc (WST)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,643,400 | 3,829,500 | 3,616,800 | 3,313,800 | 2,793,800 |
| Total stockholders’ equity | US$ in thousands | 2,682,300 | 2,881,000 | 2,684,900 | 2,335,400 | 1,854,500 |
| Financial leverage ratio | 1.36 | 1.33 | 1.35 | 1.42 | 1.51 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,643,400K ÷ $2,682,300K
= 1.36
The financial leverage ratio of West Pharmaceutical Services Inc has shown a decreasing trend over the years, moving from 1.51 in December 2020 to 1.36 in December 2024. This indicates that the company has been gradually reducing its reliance on debt to finance its operations and investments. A lower financial leverage ratio suggests a stronger financial position and less risk associated with debt obligations. West Pharmaceutical Services Inc's decreasing leverage ratio demonstrates a prudent financial management strategy that aims to maintain a healthy balance between debt and equity to support sustainable growth and profitability.
Peer comparison
Dec 31, 2024