Avient Corp (AVNT)

Debt-to-equity ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	2,070,500	2,070,800	2,179,200	2,177,700	2,176,700	2,502,900	1,249,100	1,250,200	1,850,300	1,851,000	1,852,200	1,852,700	1,854,000	1,855,200	1,849,700	1,209,700	1,210,900	1,406,300	1,392,500	1,440,700
Total stockholders’ equity	US$ in thousands	2,319,200	2,276,900	2,334,700	2,349,800	2,334,500	1,720,400	1,809,700	1,813,200	1,774,700	1,768,800	1,768,200	1,707,000	1,697,100	1,597,000	1,551,300	1,538,600	1,051,900	591,400	570,400	568,200
Debt-to-equity ratio		0.89	0.91	0.93	0.93	0.93	1.45	0.69	0.69	1.04	1.05	1.05	1.09	1.09	1.16	1.19	0.79	1.15	2.38	2.44	2.54

December 31, 2023 calculation

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

The debt-to-equity ratio of Avient Corp has shown some fluctuation over the past eight quarters, indicating changes in the company's financial structure and leverage.

From Q1 2022 to Q3 2022, the debt-to-equity ratio gradually increased from 1.02 to 1.81, suggesting a significant rise in the company's debt levels relative to equity during this period. However, in Q4 2022, there was a notable decrease in the ratio to 0.93, potentially indicating a decrease in debt or an increase in equity.

In the first quarter of 2023, the debt-to-equity ratio remained stable at 0.93, similar to the previous quarter. This consistency suggests that the company has maintained a relatively balanced mix of debt and equity in its capital structure.

It is important to monitor the debt-to-equity ratio closely as it provides insights into Avient Corp's solvency, financial risk, and ability to meet its debt obligations. A decreasing trend in the ratio may indicate a more conservative financial approach, whereas an increasing trend could signal higher financial leverage and associated risks.