Avient Corp (AVNT)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,811,100 | 5,968,500 | 6,085,000 | 5,002,900 | 4,871,300 |
| Total stockholders’ equity | US$ in thousands | 2,329,600 | 2,319,200 | 2,334,500 | 1,774,700 | 1,683,600 |
| Financial leverage ratio | 2.49 | 2.57 | 2.61 | 2.82 | 2.89 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,811,100K ÷ $2,329,600K
= 2.49
The financial leverage ratio of Avient Corp has exhibited a declining trend over the past five years, decreasing from 2.89 in December 2020 to 2.49 in December 2024. This indicates that the company has been reducing its dependence on debt to finance its operations and investments. A lower financial leverage ratio generally suggests a lower level of financial risk and greater financial stability, as the company relies less on borrowed funds. Avient Corp's decreasing financial leverage ratio may indicate a more conservative approach to capital structure management, potentially enhancing its financial flexibility and resilience to economic downturns.
Peer comparison
Dec 31, 2024