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