West Pharmaceutical Services Inc (WST)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,643,400 | 3,675,100 | 3,489,400 | 3,602,300 | 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 |
| Total stockholders’ equity | US$ in thousands | 2,682,300 | 2,752,100 | 2,576,800 | 2,680,600 | 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 |
| Financial leverage ratio | 1.36 | 1.34 | 1.35 | 1.34 | 1.33 | 1.31 | 1.34 | 1.34 | 1.35 | 1.34 | 1.39 | 1.42 | 1.42 | 1.43 | 1.44 | 1.50 | 1.51 | 1.50 | 1.49 | 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 declining trend over the past few years. It decreased from 1.51 as of March 31, 2020, to 1.36 as of December 31, 2024. This indicates that the company's reliance on debt to finance its operations has been reducing gradually. A lower financial leverage ratio suggests that the company has a lower proportion of debt in its capital structure compared to equity, which could indicate a less risky financial position. However, it is important to note that a very low leverage ratio may also imply missed opportunities for leveraging financial resources for potential growth. Overall, the declining trend in the financial leverage ratio of West Pharmaceutical Services Inc may reflect a more conservative approach towards managing its capital structure over the years.
Peer comparison
Dec 31, 2024