Avantor Inc (AVTR)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	261,900	285,300	272,600	234,900	262,900	236,900	236,400	294,600	372,900	265,600	237,500	283,600	301,700	1,426,100	223,000	172,500	286,600	370,500	415,300	346,300
Short-term investments	US$ in thousands	—	—	14,900	18,000	16,600	28,500	28,800	19,700	26,200	25,600	5,100	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	2,007,500	1,629,800	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
Cash ratio		0.13	0.18	0.20	0.18	0.19	0.18	0.17	0.19	0.24	0.19	0.15	0.20	0.21	1.08	0.16	0.14	0.23	0.33	0.39	0.31

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 for Avantor Inc has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio started at 0.31 on March 31, 2020, indicating that the company had $0.31 in cash and cash equivalents for every $1 of current liabilities. It then increased to 1.08 on September 30, 2021, suggesting that the company significantly improved its liquidity position during that period.

However, the cash ratio decreased to 0.13 on December 31, 2024, signaling a decline in the company's ability to cover its current liabilities with its cash holdings. Overall, the cash ratio fluctuated between 0.13 and 1.08 during the analyzed period, reflecting changes in Avantor Inc's liquidity management and cash position. It is essential for the company to closely monitor its cash reserves and ensure they are sufficient to meet its short-term obligations.