Avantor Inc (AVTR)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 261,900 | 262,900 | 372,900 | 301,700 | 286,600 |
| Short-term investments | US$ in thousands | — | 16,600 | 26,200 | — | — |
| Total current liabilities | US$ in thousands | 2,007,500 | 1,480,300 | 1,658,800 | 1,450,800 | 1,242,700 |
| Cash ratio | 0.13 | 0.19 | 0.24 | 0.21 | 0.23 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($261,900K
+ $—K)
÷ $2,007,500K
= 0.13
The cash ratio of Avantor Inc has shown some fluctuations over the years based on the provided data. As of December 31, 2020, the cash ratio stood at 0.23, reflecting that the company had $0.23 in cash and cash equivalents for every $1 of current liabilities. Subsequently, the ratio decreased slightly to 0.21 as of December 31, 2021, indicating a slightly lower liquidity position.
However, by December 31, 2022, the cash ratio improved to 0.24, suggesting that Avantor Inc had strengthened its ability to cover its short-term obligations with cash reserves. This positive trend reversed in the following years, with the ratio declining to 0.19 as of December 31, 2023, and further dropping to 0.13 by December 31, 2024.
The decreasing trend in the cash ratio from 2022 to 2024 could indicate potential concerns regarding the company's liquidity position and its ability to meet short-term obligations from available cash resources. It may be important for investors and analysts to closely monitor Avantor Inc's liquidity management and cash flow generation in light of these changing ratios.
Peer comparison
Dec 31, 2024