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WST (West Pharmaceutical Services) Debt-to-EBITDA : 0.37 (As of Sep. 2024)


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What is West Pharmaceutical Services Debt-to-EBITDA?

Debt-to-EBITDA measures a company's ability to pay off its debt.

West Pharmaceutical Services's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was $20 Mil. West Pharmaceutical Services's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2024 was $285 Mil. West Pharmaceutical Services's annualized EBITDA for the quarter that ended in Sep. 2024 was $824 Mil. West Pharmaceutical Services's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2024 was 0.37.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for West Pharmaceutical Services's Debt-to-EBITDA or its related term are showing as below:

WST' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.37   Med: 0.62   Max: 1.36
Current: 0.41

During the past 13 years, the highest Debt-to-EBITDA Ratio of West Pharmaceutical Services was 1.36. The lowest was 0.37. And the median was 0.62.

WST's Debt-to-EBITDA is ranked better than
73.32% of 431 companies
in the Medical Devices & Instruments industry
Industry Median: 1.54 vs WST: 0.41

West Pharmaceutical Services Debt-to-EBITDA Historical Data

The historical data trend for West Pharmaceutical Services's Debt-to-EBITDA can be seen below:

* 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.

* Premium members only.

West Pharmaceutical Services Debt-to-EBITDA Chart

West Pharmaceutical Services Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.82 0.63 0.37 0.39 0.37

West Pharmaceutical Services Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Debt-to-EBITDA Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.34 0.38 0.48 0.46 0.37

Competitive Comparison of West Pharmaceutical Services's Debt-to-EBITDA

For the Medical Instruments & Supplies subindustry, West Pharmaceutical Services's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA 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 Debt-to-EBITDA Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, West Pharmaceutical Services's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where West Pharmaceutical Services's Debt-to-EBITDA falls into.



West Pharmaceutical Services Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

West Pharmaceutical Services's Debt-to-EBITDA for the fiscal year that ended in Dec. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(151.7 + 157.3) / 844.3
=0.37

West Pharmaceutical Services's annualized Debt-to-EBITDA for the quarter that ended in Sep. 2024 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(19.9 + 284.9) / 823.6
=0.37

* 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.

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Sep. 2024) EBITDA data.


West Pharmaceutical Services  (NYSE:WST) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


West Pharmaceutical Services Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of West Pharmaceutical Services's Debt-to-EBITDA provided by GuruFocus.com. Please click on the following links to see related term pages.


West Pharmaceutical Services Business Description

Traded in Other Exchanges
Address
530 Herman O. West Drive, Exton, PA, USA, 19341-1147
West Pharmaceutical Services is based in Pennsylvania, us, and is a key supplier to firms in the pharmaceutical, biotechnology, and generic drug industries. West sells elastomer-based packaging components (including stoppers, seals, and plungers), non-glass containment solutions, and auto-injectors for injectable drugs. The company reports in two segments: proprietary products (about 80% of total revenue) and contract-manufactured products (about 20% of total revenue). It generates approximately 55% of its revenue from international markets and 45% from the United States.
Executives
Charles Witherspoon officer: VP & Treasurer 530 HERMAN O WEST DRIVE, EXTON PA 19341
Eric Mark Green officer: Chief Executive Officer 530 HERMAN O. WEST DRIVE, EXTON PA 19341
Silji Abraham officer: Chief Digital & Trans Officer 5000 TOWN CENTER, U, SOUTHFIELD MI 48075
Thomas W Hofmann director FIVE RADNOR CORPORATE CENTER, SUITE 500, RADNOR PA 19087
Chad Winters officer: VP, CAO & Controller 530 HERMAN O. WEST DRIVE, EXTON PA 19341
Annette F Favorite officer: Sr. VP Human Resources Officer 530 HERMAN O. WEST DRIVE, EXTON PA 19341
Cindy Reiss-clark officer: Senior Vice President 530 HERMAN O. WEST DRIVE, EXTON PA 19341-1147
Quintin J Lai officer: VP Corp Development & Strategy 530 HERMAN 0. WEST DRIVE, EXTON PA 19341
Bernard Birkett officer: Sr VP, CFO & Treasurer 1600 WEST MERIT PARKWAY, SOUTH JORDAN UT 84095
Stephen H Lockhart director C/O NATIONAL RESEARCH CORPORATION, 1245 Q STREET, LINCOLN NE 68508
Molly Joseph director 9209 GRAND SUMMIT BLVD, DRIPPING SPRINGS TX 78620
Kimberly Banks Mackay officer: SVP, GC & Corporate Secretary 530 HERMAN O. WEST DRIVE, EXTON PA 19341
George Lloyd Miller officer: Sr. VP, GC & Corp. Sec. 530 HERMAN O. WEST DRIVE, EXTON PA 19341
David A Montecalvo officer: SVP, Glob Ops and Supply Chain 530 HERMAN O. WEST DRIVE, EXTON PA 19341
Robert F Friel director 940 WINTER STREET, WALTHAM MA 02451