West Pharmaceutical Services Inc (WST)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 584,400 | 593,300 | 611,400 | 669,000 | 703,500 | 744,600 | 698,900 | 738,000 | 767,300 | 744,800 | 791,800 | 775,700 | 766,800 | 692,800 | 616,000 | 514,100 | 418,000 | 374,100 | 341,100 | 311,800 |
| Interest expense (ttm) | US$ in thousands | 4,600 | 5,000 | 7,200 | 8,400 | 9,000 | 9,500 | 8,800 | 8,300 | 8,300 | 8,900 | 8,500 | 8,000 | 7,600 | 7,200 | 7,300 | 7,400 | 6,800 | 5,700 | 4,900 | 4,500 |
| Interest coverage | 127.04 | 118.66 | 84.92 | 79.64 | 78.17 | 78.38 | 79.42 | 88.92 | 92.45 | 83.69 | 93.15 | 96.96 | 100.89 | 96.22 | 84.38 | 69.47 | 61.47 | 65.63 | 69.61 | 69.29 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $584,400K ÷ $4,600K
= 127.04
The interest coverage ratio measures a company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio indicates a stronger ability to cover interest expenses.
Analyzing the interest coverage ratio of West Pharmaceutical Services Inc over the past few years, we see fluctuations in the ratio.
- The interest coverage ratio increased steadily from March 2020 to December 2021, indicating an improvement in the company's ability to cover its interest expenses.
- From March 2022 to June 2024, the interest coverage ratio fluctuated within a certain range, indicating some variability in the company's ability to cover its interest expenses during this period.
- Notably, the interest coverage ratio significantly increased in the last two quarters of 2024, reaching its highest point at 127.04 in December 2024, suggesting a strong improvement in the company's ability to cover its interest expenses.
Overall, West Pharmaceutical Services Inc has shown a generally healthy interest coverage ratio over the observed period, with some fluctuations but a strong upward trend in recent quarters, indicating the company's improving ability to meet its interest obligations with its operating income.
Peer comparison
Dec 31, 2024