West Pharmaceutical Services Inc (WST)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 2,341,400 | 2,174,000 | 2,123,200 | 2,036,200 |
| 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 |
| Financial leverage ratio | 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 | 1.49 | 1.46 | 1.47 | 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 of West Pharmaceutical Services, Inc. has been relatively stable over the past eight quarters, ranging from 1.31 to 1.42. The ratio indicates that the company's capital structure is moderately leveraged, with a slight fluctuation but no significant trend observed during the period.
A financial leverage ratio above 1 suggests that the company has more debt than equity in its capital structure, which indicates some level of financial risk. In the case of West Pharmaceutical Services, Inc., the ratios ranging from 1.31 to 1.42 demonstrate that the company relies more on debt financing compared to equity, but the extent of leverage has not shown significant variations.
It is essential for investors and stakeholders to monitor the financial leverage ratio over time to assess the company's ability to meet its financial obligations and manage its debt effectively. Any significant changes in the ratio may indicate changes in the company's capital structure and risk profile, necessitating further analysis to understand the implications for the company's financial health and stability.
Peer comparison
Dec 31, 2023