Avient Corp (AVNT)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,070,500 | 2,176,700 | 1,850,300 | 1,854,000 | 1,210,900 |
| Total stockholders’ equity | US$ in thousands | 2,319,200 | 2,334,500 | 1,774,700 | 1,697,100 | 1,051,900 |
| Debt-to-capital ratio | 0.47 | 0.48 | 0.51 | 0.52 | 0.54 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,070,500K ÷ ($2,070,500K + $2,319,200K)
= 0.47
The debt-to-capital ratio of Avient Corp has shown a decreasing trend over the past five years, indicating a positive sign of reducing reliance on debt financing compared to equity. As of December 31, 2023, the ratio stands at 0.47, which means that 47% of the company's capital is financed through debt. This suggests a relatively conservative approach to leverage, which can be beneficial in terms of financial stability and risk management. Overall, the decreasing trend in the debt-to-capital ratio reflects a potential strengthening of Avient Corp's financial position and a prudent capital structure management strategy.
Peer comparison
Dec 31, 2023