Avantor Inc (AVTR)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.61 | 1.60 | 1.71 | 1.80 | 1.88 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,384,900K ÷ $1,480,300K
= 1.61
The current ratio for Avantor Inc has exhibited a decreasing trend over the past five years. In 2023, the current ratio stands at 1.61, which indicates that the company has $1.61 in current assets for every $1 in current liabilities. This ratio has slightly decreased compared to 2022 when it was 1.60.
The decreasing trend in the current ratio may suggest potential liquidity concerns for Avantor Inc. A relatively lower current ratio could indicate that the company may face difficulty in meeting its short-term obligations using its current assets.
Despite the declining trend, Avantor Inc's current ratio has remained above 1 over the years, indicating that the company has sufficient current assets to cover its current liabilities. However, stakeholders should closely monitor this trend to ensure that the company can maintain its liquidity position in the future.
Peer comparison
Dec 31, 2023