Avantor Inc (AVTR)

Activity ratios

Short-term

Turnover ratios

Dec 31, 2024 Sep 30, 2024 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 6.16 5.81 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 6.56 6.27 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 6.80 6.73 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 48.77 7.79 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

Activity ratios are important indicators of how efficiently a company manages its assets and operations. Here is a detailed analysis of Avantor Inc's activity ratios based on the provided data:

1. Inventory Turnover:
- Avantor Inc's inventory turnover ratio has been relatively stable over the periods analyzed, ranging from 5.27 to 6.16. This indicates that the company is effective in managing its inventory levels and selling goods within a reasonable timeframe.

2. Receivables Turnover:
- The receivables turnover ratio for Avantor Inc has varied between 5.54 and 6.56. A higher turnover ratio suggests that the company is efficient in collecting payments from customers and managing its accounts receivables.

3. Payables Turnover:
- Avantor Inc's payables turnover ratio has demonstrated fluctuation, with values ranging from 6.08 to 7.95. A higher turnover ratio indicates that the company is paying its suppliers promptly, which can have implications for its working capital management.

4. Working Capital Turnover:
- The working capital turnover ratio for Avantor Inc has shown a decreasing trend over time, from 48.77 to 4.86. A high turnover ratio may indicate that the company is effectively utilizing its working capital to generate revenue.

In conclusion, Avantor Inc's activity ratios reflect its operational efficiency in managing inventory, receivables, payables, and working capital. The company appears to be effectively turning over its assets and liabilities, which is crucial for maintaining financial health and sustainability.

Average number of days

Dec 31, 2024 Sep 30, 2024 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 59.28 62.77 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 55.66 58.21 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 53.71 54.23 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 how efficiently the company manages its inventory, receivables, and payables.

1. Days of Inventory on Hand (DOH):
- Avantor's DOH has shown a slight increase over the years, indicating that the company is holding onto its inventory for a longer period. This may suggest slower inventory turnover or challenges in managing inventory levels efficiently. However, the DOH figures have remained relatively stable within a range of around 60 to 70 days.

2. Days of Sales Outstanding (DSO):
- The DSO ratio reflects how quickly Avantor is collecting payments from its customers. The trend shows some fluctuations but generally improving DSO performance over the years. Lower DSO values indicate that the company is collecting receivables more quickly, which is a positive sign as it signifies efficient credit management or stronger customer payment terms.

3. Number of Days of Payables:
- Avantor's payables days have shown some variation but with a decreasing trend overall, suggesting the company is taking longer to settle its payables to suppliers. This could be a strategic move to improve cash flow or negotiate more favorable payment terms. However, a longer payables period may strain relationships with suppliers if not managed carefully.

In summary, Avantor Inc's activity ratios indicate the company's performance in managing its inventory, receivables, and payables. While the trends point to areas of both efficiency and potential challenges, further analysis and comparison with industry benchmarks would provide a clearer picture of the company's operational effectiveness.

Long-term

Dec 31, 2024 Sep 30, 2024 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 9.58 9.44 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 0.56 0.53 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 fluctuated within a range over the period from March 31, 2020, to December 31, 2024. The ratio ranged from a high of 12.39 in March 2021 to a low of 9.05 in June 30, 2024. This ratio measures how efficiently the company generates sales relative to its investment in fixed assets.

On the other hand, the total asset turnover ratio, which assesses how well the company utilizes its total assets to generate sales, displayed a declining trend overall during this period. The ratio was highest at 0.68 in March 31, 2021, and lowest at 0.53 in December 31, 2021. However, it showed some stability around the range of 0.53 to 0.58 from March 2022 to December 2024.

Overall, the fixed asset turnover ratio depicted some volatility, while the total asset turnover ratio showed a general decline over the period under review. This may suggest changes in the efficiency of Avantor Inc in generating sales from its fixed and total assets, respectively.