Avantor Inc (AVTR)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,146,600 | 2,384,900 | 2,657,900 | 2,477,200 | 2,230,900 |
| Total current liabilities | US$ in thousands | 2,007,500 | 1,480,300 | 1,658,800 | 1,450,800 | 1,242,700 |
| Current ratio | 1.07 | 1.61 | 1.60 | 1.71 | 1.80 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,146,600K ÷ $2,007,500K
= 1.07
The current ratio of Avantor Inc has shown a downward trend over the past few years, declining from 1.80 in 2020 to 1.07 in 2024. While the current ratio remains above 1, indicating that the company has more current assets than current liabilities to meet its short-term obligations, the decreasing trend raises some concerns. A current ratio below 1 would imply that the company may have difficulty meeting its short-term liabilities. Avantor Inc should closely monitor its liquidity position and assess its ability to convert current assets into cash to sustain its operations effectively.
Peer comparison
Dec 31, 2024