Avient Corp (AVNT)

Debt-to-equity 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-equity ratio		0.89	0.93	1.04	1.09	1.15

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,070,500K ÷ $2,319,200K
= 0.89

The trend of Avient Corp's debt-to-equity ratio over the past five years indicates a gradual decrease in the level of leverage. The ratio has declined from 1.17 in 2019 to 0.90 in 2023, demonstrating a reduction in the company's reliance on debt financing relative to equity. This improvement suggests that Avient Corp has been successful in managing its debt levels and strengthening its financial position. A lower debt-to-equity ratio generally indicates a lower financial risk and a healthier balance sheet structure. However, it is essential to further assess the components of both debt and equity to gain a more comprehensive understanding of the company's overall financial health.