Avient Corp (AVNT)

Solvency ratios

	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
Debt-to-assets ratio	0.35	0.36	0.36	0.36	0.36	0.40	0.25	0.25	0.37	0.37	0.37	0.38	0.38	0.39	0.43	0.32	0.37	0.48	0.48	0.49
Debt-to-capital ratio	0.47	0.48	0.48	0.48	0.48	0.59	0.41	0.41	0.51	0.51	0.51	0.52	0.52	0.54	0.54	0.44	0.54	0.70	0.71	0.72
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
Financial leverage ratio	2.57	2.54	2.59	2.60	2.61	3.67	2.79	2.78	2.82	2.83	2.85	2.88	2.87	2.95	2.80	2.43	3.11	4.98	5.14	5.21

Avient Corp's solvency ratios show a consistent trend of improvement over the past eight quarters. The debt-to-assets ratio has decreased from 0.49 in Q3 2022 to 0.35 in Q4 2023, indicating the company has been able to reduce its reliance on debt in relation to its total assets.

Similarly, the debt-to-capital ratio and debt-to-equity ratio have also shown a decreasing trend, suggesting that Avient Corp has been effectively managing its debt levels in relation to its capital structure and shareholders' equity. The debt-to-capital ratio decreased from 0.64 in Q3 2022 to 0.47 in Q4 2023, while the debt-to-equity ratio went down from 1.81 in Q3 2022 to 0.90 in Q4 2023.

Furthermore, the financial leverage ratio has also improved from 3.67 in Q3 2022 to 2.57 in Q4 2023, indicating that the company's financial risk has decreased as it relies less on debt to finance its operations.

Overall, the improving trend in Avient Corp's solvency ratios reflects a positive trajectory in managing its debt structure and indicates a healthier financial position.

Coverage ratios

	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
Interest coverage	1.57	1.12	1.11	1.50	2.03	3.33	4.39	4.30	4.40	4.49	3.72	3.04	2.54	2.15	2.91	3.07	2.64	2.63	2.72	2.78

The interest coverage ratio measures a company's ability to meet its interest obligations using its operating income. A higher ratio indicates that the company is more capable of covering its interest expenses.

Analyzing Avient Corp's interest coverage over the past eight quarters, we observe fluctuations in the ratio. In Q4 2023, the interest coverage stood at 1.71, indicating that the company generated 1.71 times more operating income than the amount needed to cover its interest payments. This represents an improvement from the previous quarter's ratio of 0.71 in Q3 2023, which was notably low and suggested a potential challenge in meeting interest obligations.

The trend in Avient Corp's interest coverage shows variability over the analyzed quarters. While the company exhibited strong interest coverage ratios in Q2 and Q1 of 2022, with ratios of 5.90 and 5.34 respectively, indicating a robust ability to make interest payments, the ratios decreased in subsequent quarters. In Q4 2022, the ratio dropped to 2.03, still reflecting a healthy interest coverage but lower than the preceding quarters.

The recent trend of lower interest coverage ratios in Q3 and Q2 of 2023, compared to the previous levels, raises some concern about the company's ability to comfortably meet its interest obligations. It is essential for investors and stakeholders to monitor this ratio closely in future periods to assess Avient Corp's financial health and its ability to service its debt.