West Pharmaceutical Services Inc (WST)

Solvency ratios

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
Debt-to-assets ratio 0.02 0.04 0.06 0.06 0.06 0.06 0.06 0.06 0.06 0.07 0.09 0.09 0.09 0.10 0.11 0.11 0.11 0.09 0.09 0.10
Debt-to-capital ratio 0.02 0.05 0.07 0.07 0.07 0.08 0.08 0.08 0.08 0.09 0.11 0.12 0.12 0.13 0.14 0.15 0.14 0.12 0.12 0.12
Debt-to-equity ratio 0.03 0.05 0.07 0.07 0.08 0.08 0.09 0.09 0.09 0.10 0.12 0.14 0.14 0.15 0.16 0.17 0.16 0.13 0.14 0.14
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

The solvency ratios of West Pharmaceutical Services, Inc. provide insights into the company's ability to meet its long-term financial obligations and its overall financial stability.

The debt-to-assets ratio has been relatively stable over the past eight quarters, ranging from 0.05 to 0.08. This ratio indicates that, on average, only a small percentage of the company's assets are financed by debt, suggesting a strong ability to cover obligations using its assets.

Similarly, the debt-to-capital ratio and the debt-to-equity ratio also show consistency over the same period, with values ranging from 0.07 to 0.11. These ratios indicate the level of financial leverage employed by the company and illustrate how much of the company's capital structure is financed by debt. West Pharmaceutical Services, Inc. has maintained a moderate level of debt in relation to both capital and equity, suggesting a balanced mix of debt and equity in its funding structure.

Lastly, the financial leverage ratio has also shown stability, fluctuating between 1.31 and 1.42. This ratio reflects the company's reliance on debt to finance its operations in comparison to its equity. The consistent values indicate that West Pharmaceutical Services, Inc. has maintained a relatively stable financial leverage position over the past two years.

Overall, based on the solvency ratios, West Pharmaceutical Services, Inc. appears to have a sound financial position with a conservative approach to debt utilization and a well-balanced capital structure, indicating a strong ability to meet its long-term financial obligations.

Coverage ratios

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
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

Interest coverage measures a company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT). The interest coverage ratio is calculated by dividing EBIT by interest expense, where a higher ratio indicates a stronger ability to cover interest costs.

In the case of West Pharmaceutical Services, Inc., the interest coverage ratio for the most recent quarters (Q4 2023, Q3 2023, Q2 2023, and Q1 2023) is not provided in the table. However, looking at the available data, we observe a significant improvement in the interest coverage ratio over the past four quarters.

In Q4 2022, West Pharmaceutical Services, Inc. had an interest coverage ratio of 279.11, indicating a very strong ability to cover its interest expenses from its operating earnings. This was higher than the ratios in the preceding quarters, which were 86.84 in Q3 2022, 114.91 in Q2 2022, and 108.29 in Q1 2022.

The data suggests that the company has demonstrated a consistent ability to cover its interest costs throughout the past year, with a notable improvement in Q4 2022. This upward trend in the interest coverage ratio reflects a positive financial performance and suggests that West Pharmaceutical Services, Inc. has sufficient earnings to meet its interest obligations comfortably.