Avient Corp (AVNT)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	5,968,500	6,085,000	4,997,200	4,870,500	3,273,300
Total stockholders’ equity	US$ in thousands	2,319,200	2,334,500	1,774,700	1,697,100	1,051,900
Financial leverage ratio		2.57	2.61	2.82	2.87	3.11

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,968,500K ÷ $2,319,200K
= 2.57

The financial leverage ratio of Avient Corp has shown a declining trend over the past five years, decreasing from 3.11 in 2019 to 2.57 in 2023. This trend indicates that the company's reliance on debt to finance its operations and growth has been gradually decreasing. A lower financial leverage ratio suggests that the company has been using less debt and more equity in its capital structure, which can be a positive sign as it indicates reduced financial risk and potentially greater financial stability. It also implies that the company may have improved its ability to generate profits from its operations to support its financial obligations without relying heavily on debt financing. Overall, the decreasing trend in the financial leverage ratio of Avient Corp reflects a more conservative approach to managing its capital structure and financial risk over the years.