Avantor Inc (AVTR)

Activity ratios

Short-term

Turnover ratios

Jun 30, 2024 Mar 31, 2024 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
Inventory turnover 5.69 5.62 5.56 5.45 5.27 5.31 5.37 5.51 5.42 5.55 5.60 5.73 5.60 5.75 5.83 5.68 5.53 6.02
Receivables turnover 6.05 6.08 6.06 6.12 5.90 5.75 6.17 6.19 5.99 5.61 6.04 6.14 5.55 5.54 5.74 5.91 6.13 5.84
Payables turnover 6.88 7.95 7.35 7.06 6.84 6.27 6.48 6.49 6.26 6.08 6.47 6.92 6.24 6.33 6.35 6.63 7.02 6.76
Working capital turnover 7.89 7.81 7.70 7.85 7.56 7.67 7.52 7.56 7.60 6.51 7.20 3.24 6.74 6.72 6.47 5.28 4.86 5.68

Avantor Inc's activity ratios provide insights into the efficiency of the company's operations in managing its inventory, receivables, payables, and working capital.

1. Inventory turnover: The inventory turnover ratio has been relatively stable over the periods, ranging between 5.27 to 5.83 times. This indicates that Avantor is efficiently managing its inventory, with the ability to sell and replace its inventory multiple times during the year.

2. Receivables turnover: The receivables turnover ratio shows a consistent performance, varying between 5.54 to 6.19 times. This suggests that Avantor is efficient in collecting revenue from its customers, with a faster turnover of accounts receivable.

3. Payables turnover: Avantor's payables turnover ratio has shown some fluctuations but generally remains within a range of 6.08 to 7.95 times. This indicates that the company is managing its accounts payable effectively, taking advantage of credit terms from suppliers.

4. Working capital turnover: The working capital turnover ratio reflects how efficiently Avantor is utilizing its working capital to generate revenue. The ratio has shown some variability, ranging from 3.24 to 7.89 times. A higher ratio indicates more effective utilization of working capital.

Overall, based on the activity ratios analysis, Avantor Inc appears to have efficient operations in managing its inventory, receivables, payables, and working capital to support its revenue generation and growth.

Average number of days

Jun 30, 2024 Mar 31, 2024 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
Days of inventory on hand (DOH) days 64.18 64.92 65.66 67.01 69.21 68.68 67.91 66.21 67.32 65.79 65.18 63.75 65.13 63.52 62.59 64.23 66.03 60.61
Days of sales outstanding (DSO) days 60.37 60.05 60.26 59.64 61.85 63.49 59.20 58.95 60.95 65.03 60.39 59.48 65.78 65.85 63.56 61.77 59.59 62.51
Number of days of payables days 53.03 45.93 49.63 51.68 53.37 58.17 56.37 56.25 58.28 60.08 56.44 52.78 58.50 57.70 57.45 55.03 51.99 53.97

Avantor Inc's activity ratios provide insights into the efficiency of the company's operations and management of its working capital components.

1. Days of Inventory on Hand (DOH): Avantor's average days of inventory on hand have been relatively stable over the periods, ranging from 60 to 70 days. This indicates that the company maintains its inventory for about 2 to 3 months before selling it, which may impact its liquidity and storage costs.

2. Days of Sales Outstanding (DSO): The average days of sales outstanding have varied between 55 to 65 days. This metric reveals how quickly Avantor collects its accounts receivable. A lower DSO is generally favorable as it signifies faster cash conversion and efficient credit management.

3. Number of Days of Payables: Avantor's average days of payables have fluctuated between 45 to 60 days. A higher number of days of payables suggests that the company takes longer to pay off its suppliers, potentially indicating better cash flow management but also could signal strained vendor relationships.

Overall, Avantor Inc's activity ratios indicate a balance in managing its inventory levels, receivables collection, and payables turnover. It is essential for the company to continue monitoring and optimizing these ratios to enhance operational efficiency and maintain healthy working capital levels.

Long-term

Jun 30, 2024 Mar 31, 2024 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
Fixed asset turnover 9.05 9.28 9.45 10.08 10.28 9.97 10.33 10.92 10.89 10.79 10.47 10.65 10.79 12.39 11.63 11.09 10.92 10.93
Total asset turnover 0.54 0.54 0.54 0.55 0.55 0.55 0.56 0.58 0.57 0.55 0.53 0.60 0.63 0.68 0.65 0.62 0.61 0.62

The Fixed Asset Turnover ratio for Avantor Inc has been relatively stable over the past quarters, ranging from 9.05 to 12.39. This indicates that the company generates between $9.05 to $12.39 in revenue for every dollar invested in fixed assets. The consistent high values of this ratio suggest that Avantor efficiently utilizes its fixed assets to generate sales.

On the other hand, the Total Asset Turnover ratio has also remained relatively stable, hovering around 0.54 to 0.68 over the same period. This ratio indicates that Avantor generates between $0.54 to $0.68 in revenue for every dollar invested in total assets. The stability of this ratio suggests that the company effectively utilizes its total assets to generate sales.

Overall, the analysis of Avantor Inc's long-term activity ratios indicates that the company is efficiently using its assets to generate revenue consistently over the quarters, which is a positive sign for its operational efficiency and asset utilization.