Avantor Inc (AVTR)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	6,967,200	7,512,400	7,386,100	6,393,600	6,040,300
Total current assets	US$ in thousands	2,384,900	2,657,900	2,477,200	2,230,900	2,021,500
Total current liabilities	US$ in thousands	1,480,300	1,658,800	1,450,800	1,242,700	1,074,500
Working capital turnover		7.70	7.52	7.20	6.47	6.38

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $6,967,200K ÷ ($2,384,900K – $1,480,300K)
= 7.70

Avantor Inc's working capital turnover has shown a consistent upward trend over the past five years, indicating an improvement in the efficiency of the company's working capital management. The ratio has increased from 6.38 in 2019 to 7.70 in 2023, signifying that the company is generating $7.70 in net sales revenue for every dollar of working capital invested.

This improvement suggests that Avantor Inc has been able to effectively utilize its working capital resources to support its operations and generate sales. A higher working capital turnover ratio is generally viewed positively as it indicates that the company is efficiently managing its current assets and liabilities.

Overall, the upward trend in Avantor Inc's working capital turnover ratio reflects the company's ability to optimize its working capital position and efficiently convert its investments in current assets into sales revenue over the years.