West Pharmaceutical Services Inc (WST)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.36 | 1.34 | 1.35 | 1.34 | 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 |
West Pharmaceutical Services Inc has consistently maintained a strong solvency position over the past few years, as indicated by its low debt-to-assets, debt-to-capital, and debt-to-equity ratios, all of which have remained at 0.00 throughout the reported periods. This suggests that the company has a minimal level of debt relative to its total assets, capital, and equity, signaling a low financial risk and a robust financial structure.
Additionally, the financial leverage ratio, which provides an indication of the company's financial risk in terms of its ability to meet its financial obligations, has shown a decreasing trend from 1.51 in March 2020 to 1.36 in December 2024. This downward trend indicates that West Pharmaceutical Services Inc has been gradually reducing its reliance on debt to finance its operations and investments, which is a positive sign of financial stability and prudent financial management.
Overall, based on the solvency ratios analyzed, West Pharmaceutical Services Inc appears to be in a sound financial position with a conservative debt structure and a decreasing level of financial leverage, which bodes well for its long-term financial health and sustainability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio measures a company's ability to meet its interest obligations through its operating income. A higher interest coverage ratio indicates a more robust ability to cover interest expenses with earnings.
Analyzing West Pharmaceutical Services Inc's interest coverage over the provided periods shows fluctuating values. The interest coverage ratio ranged from a low of 61.47 in December 2020 to a high of 127.04 in December 2024. This indicates that the company's ability to cover its interest expenses improved significantly over this period, showing financial stability and a stronger ability to meet its debt obligations.
Overall, the interest coverage ratio trend for West Pharmaceutical Services Inc has been positive, with the company consistently showing a healthy ability to cover its interest expenses from its operating income. However, it is important to monitor this ratio over time to ensure continued financial health and sustainability.