West Pharmaceutical Services Inc (WST)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 588,500 | 706,800 | 767,300 | 772,900 | 422,600 |
| Interest expense | US$ in thousands | 3,000 | 9,000 | 7,900 | 7,200 | 6,800 |
| Interest coverage | 196.17 | 78.53 | 97.13 | 107.35 | 62.15 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $588,500K ÷ $3,000K
= 196.17
The interest coverage ratio for West Pharmaceutical Services Inc has shown a consistent and strong upward trend over the past five years. Starting at 62.15 in December 31, 2020, the ratio has steadily increased to 107.35 by December 31, 2021, and maintained a healthy level around 97.13 in December 31, 2022. Although there was a slight dip to 78.53 in December 31, 2023, the ratio quickly rebounded to an impressive 196.17 by December 31, 2024.
This trend indicates that West Pharmaceutical Services Inc has been effectively generating earnings to cover its interest expenses, with a significant improvement in its ability to meet its interest obligations over the years. The consistently high interest coverage ratio reflects the company's strong financial position and its ability to comfortably service its debt, providing a favorable indicator to investors and creditors regarding its creditworthiness and financial stability.
Peer comparison
Dec 31, 2024