West Pharmaceutical Services Inc (WST)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 724,700 | 685,600 | 635,200 | 677,100 | 708,500 | 759,400 | 805,600 | 792,600 | 777,200 | 713,600 | 629,700 | 517,400 | 426,900 | 388,500 | 352,300 | 326,700 | 309,200 | 292,500 | 284,000 | 260,700 |
| Interest expense (ttm) | US$ in thousands | 9,000 | 9,500 | 8,800 | 7,900 | 7,900 | 8,800 | 8,400 | 8,500 | 8,200 | 7,700 | 8,000 | 8,100 | 8,200 | 8,200 | 8,200 | 8,200 | 8,500 | 8,700 | 8,600 | 8,800 |
| Interest coverage | 80.52 | 72.17 | 72.18 | 85.71 | 89.68 | 86.30 | 95.90 | 93.25 | 94.78 | 92.68 | 78.71 | 63.88 | 52.06 | 47.38 | 42.96 | 39.84 | 36.38 | 33.62 | 33.02 | 29.62 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $724,700K ÷ $9,000K
= 80.52
The interest coverage ratio for West Pharmaceutical Services, Inc. significantly improved in Q4 2022 compared to the previous quarters, with a strong value of 279.11. This indicates that the company's operating income was substantially higher than its interest expenses during that period, implying a robust ability to meet its interest payments from its earnings. The steady increase in the interest coverage ratio from Q1 2022 to Q4 2022 reflects the company's enhanced financial stability and efficiency in managing its debt obligations. However, the lack of data for Q1-Q3 2023 makes it challenging to assess the current trend in interest coverage, necessitating a closer examination of future financial reports to monitor the company's ability to service its debt obligations in the upcoming quarters.
Peer comparison
Dec 31, 2023