Avantor Inc (AVTR)

Working capital turnover

		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	Dec 31, 2019	Sep 30, 2019
Revenue (ttm)	US$ in thousands	6,825,600	6,866,700	6,967,200	7,039,400	7,175,700	7,342,300	7,512,400	7,625,000	7,602,800	7,550,900	7,386,100	7,269,400	7,040,100	6,660,200	6,393,600	6,126,700	6,025,500	6,079,200
Total current assets	US$ in thousands	2,329,200	2,321,100	2,384,900	2,384,800	2,499,100	2,627,300	2,657,900	2,560,100	2,571,500	2,606,300	2,477,200	3,564,600	2,422,700	2,232,000	2,230,900	2,296,800	2,292,300	2,196,600	2,021,500	2,018,700
Total current liabilities	US$ in thousands	1,464,600	1,441,900	1,480,300	1,488,100	1,550,100	1,669,500	1,658,800	1,551,900	1,571,300	1,447,100	1,450,800	1,320,100	1,377,700	1,240,700	1,242,700	1,136,000	1,053,700	1,126,600	1,074,500	1,078,700
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

June 30, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $6,825,600K ÷ ($2,329,200K – $1,464,600K)
= 7.89

Avantor Inc's working capital turnover has shown fluctuating trends over the periods presented. The working capital turnover ratio indicates how efficiently the company is utilizing its working capital to generate sales. A higher turnover ratio suggests that the company is effectively managing its working capital, while a lower ratio may indicate inefficiencies in working capital management.

The working capital turnover ratio for Avantor Inc has been relatively stable in recent quarters, ranging from 7.52 to 7.89. This suggests that the company has been consistently efficient in using its working capital to support its sales activities during these periods.

However, there are instances of significant fluctuations in the ratio, such as the sharp decrease to 3.24 in the first quarter of 2022, which indicates a potential temporary inefficiency in working capital management during that period. The subsequent improvement to 6.74 and onwards to 7.89 suggests that the company may have addressed these inefficiencies and optimized its working capital utilization.

Overall, the trend in Avantor Inc's working capital turnover indicates that the company has been fairly efficient in managing its working capital to support its sales activities, with some periods of fluctuation that may require further analysis to understand the underlying factors driving these variations.