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.
Peer comparison
Dec 31, 2023