What is West Pharmaceutical Services Current Ratio?
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. West Pharmaceutical Services's current ratio for the quarter that ended in Dec. 2023 was 2.88.
West Pharmaceutical Services has a current ratio of 2.88. It generally indicates good short-term financial strength.
The historical rank and industry rank for West Pharmaceutical Services's Current Ratio or its related term are showing as below:
WST'
s Current Ratio Range Over the Past 10 Years
Min: 2.14 Med: 2.81 Max: 3.7
Current: 2.88
During the past 13 years, West Pharmaceutical Services's highest Current Ratio was 3.70. The lowest was 2.14. And the median was 2.81.
WST's Current Ratio is ranked better than 52.25% of 867
companies
in the Medical Devices & Instruments industry
Industry Median: 2.74
vs WST: 2.88
West Pharmaceutical Services Current Ratio Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of West Pharmaceutical Services's Current Ratio
For the Medical Instruments & Supplies subindustry, West Pharmaceutical Services's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
West Pharmaceutical Services's Current Ratio Distribution in the Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, West Pharmaceutical Services's Current Ratio distribution charts can be found below:
* The bar in red indicates where West Pharmaceutical Services's Current Ratio falls into.
West Pharmaceutical Services Current Ratio Calculation
The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
West Pharmaceutical Services (NYSE:WST) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
West Pharmaceutical Services Current Ratio Related Terms
Thank you for viewing the detailed overview of West Pharmaceutical Services's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
West Pharmaceutical Services (West Pharmaceutical Services) Business Description
West Pharmaceutical Services is a Pennsylvania-based medical supplies company that operates as a key supplier to firms in the pharmaceutical, biotechnology, and generic drug industries. West develops, manufactures, and distributes elastomer-based supplies for the containment and administration of injectable drugs, including basic equipment such as syringes, stoppers, and plungers, along with somewhat more complicated devices including auto-injectors and other self-injection platforms. The company reports in two segments: proprietary products (82% of 2021 sales) and contract-manufactured products (18%). It generates 55% of its revenue from international markets and 45% from the United States.
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